Committees & Groups

Issue Details

Summer-only Demand Response

After the Reliability Pricing Model transitioned from procuring annual and sub-annual products to procuring a single, annual Capacity Performance product, certain resource types, namely summer-only Demand Response (DR) resources, were required to aggregate with other resources to create annual capability. Recent auction clearing results indicate that much of the DR that cleared in previous auctions as a sub-annual resource was able to make the transition to an annual commitment for the 2020/2021 Delivery Year, indicating that participation in RPM as a supply resource is still the preferred viable method for Curtailment Service Providers and customers to realize value for Demand Response resources. However, PJM recognizes there may still be Demand Response resources that are unable to make annual commitments, unable to aggregate commercially prior to the auction, or unable to clear as “summer only” through the new enhanced aggregation rules that have been implemented as part of the auction clearing process. PJM understands that these resources have made investments, and in some instances commitments to state regulators, that will result in their continued operation (primarily as peak shaving resources). Further, summer-only Demand Response resources have historically demonstrated their ability to provide operational flexibility to system operators during times of system stress. As such, PJM staff and stakeholders should discuss whether or not there are opportunities to value summer-only Demand Response resources through the load forecasting process or other mechanisms that would serve as an alternative to supply-side participation in the capacity market.

Proposed Timeline

Issue initiated: 8.24.2017
Work begins: 10.1.2017
Target Completion: TBD
Actual Completion: TBD

Issue Details

Stakeholder Body Summer-Only Demand Response Senior Task Force
Facilitator Baker, Scott
Subject Matter Expert Langbein, Peter
Problem Statement/
Issue Charge First Read
7.27.2017
Issue Catalyst 2020/2021 BRA clearing results and prior work in the Seasonal Capacity Resources Senior Task Force
Issue Status Closed
Manual Changes Yes
Agreement Changes Open Access Transmission Tariff, Operating Agreement, Reliability Assurance Agreement
  • Stakeholder Process Step

  • Completed Approved
  • Completed Education
  • Completed Interest
  • Completed Design
  • Completed Options
  • Completed Packages
  • Completed Consensus
  • Completed Review
  • Completed Completed
12.7.2018 -Filing-
Docket No, ER19-511-000  PDF
5.30.2019 -Filing-
Docket No. ER19-511-002  PDF
5.3.2019 -Order-
Docket No. ER19-511-000  PDF