PJM Files “Stop-Gap” Proposal for Demand Response Participation in Capacity Market

In the wake of a federal appeals court vacating the Federal Energy Regulatory Commission’s Order 745, the role of demand response in wholesale markets is up in the air. Despite this uncertainty, PJM still has a responsibility to ensure the grid’s reliability and its markets’ efficiency.

PJM has filed with the FERC a “stop-gap” or “temporary detour” proposal that will allow demand response to continue to participate in PJM’s capacity market (called the Reliability Pricing Model) in a way that is consistent with the appeals court’s ruling. PJM will only implement these changes if the United States Supreme Court denies the Commission’s petitions to review the case, which is ultimately about the FERC’s jurisdiction over demand response as a product.

The filing is available on PJM’s website.

Learn more about demand response on the PJM Learning Center.

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