Meeting #30: Demand Response and Energy Efficiency in the PJM Wholesale Market

Monday, September 30, 2013
10:00am – 3:15pm ET
PJM Headquarters, Norristown, PA


This meeting featured a long-awaited tour of PJM Interconnection’s headquarters location. PJM arranged shuttle transportation from Philadelphia’s 30th Street Station to their building. Before the tour began, we held a panel on how demand response programs participate in the PJM wholesale electricity market. After lunch and a facility tour, we held a second panel focused on how energy efficiency is treated as a resource in the PJM wholesale market. The goal of this meeting was for participants to develop a better understanding of how practical and operational issues are managed in PJM for demand side resources, and a better appreciation of the value of viewing EE and DR more holistically – i.e., from the perspective of the customer.


Final agenda (pdf)


Demand Response in the PJM Wholesale Market
Michael Lee, FERC
Pete Langbein, PJM
Sam Wolfe, Viridity

This panel examined DR trends in the PJM market and how technologies and market rules have evolved over time. PJM reported on the performance of DR over this summer. This included a discussion on the market rules for dispatching resources from an economic, resource reliability and emergency basis. Rather than discussing or debating what the market rules could or should be, the panel focused on how the current rules are implemented and how DR resources are managed in a day-to-day operational sense. We learned about operational enhancements that PJM is currently making, e.g. to enable DR to be used for frequency regulation. This touched on how rules get applied in light of new technologies and innovations. We benefited from insights provided by representatives of FERC, PJM, and a Curtailment Service Provider providing DR in the PJM Market.

Energy Efficiency in the PJM Wholesale Market
Terri Esterly, PJM
Julia Friedman, National Association of State Energy Officials
Paul Miles, PECO

The second panel focused on another crucial demand side resource that has received less attention in recent MADRI meetings than DR or distributed generation: energy efficiency. PJM’s market rules have created new opportunities for utilities, non-utility energy efficiency program administrators, and aggregators of retail customers (ARCs) to participate in wholesale markets. This panel looked at the options for energy efficiency, and how the market has responded to date. Practical, operational details were featured. Our panelists represented the perspectives of PJM, state energy officials, and a market participant.

Integrating EE and DR from the Customer’s Perspective
Laurie Actman, Energy Efficient Buildings Hub/Pennsylvania State University

Some service providers operating in the PJM market are looking to integrate EE and DR programs to maximize benefits for their customers. We concluded the meeting with a brief look at the impact of jointly assessing the efficiency of a customer’s facility and its potential to provide responsive demand. Policy implications for the MADRI states and for PJM was noted.