PJM Seeks To Change M&V for Demand Response, Customer Baseline Load
August 23,2016
PJM has filed tariff changes at FERC to modify how Emergency Load Response Program participants under the Full Program Option are compensated for load reductions.
With the revisions, PJM proposes the following for Load Management registrations: (1) change the default Customer Baseline Load (CBL) for locations without approved Economic Load Response registrations from the hour-before CBL measure to the more robust default economic CBL “three-day” measure with Symmetric Additive Adjustment (“SAA”); (2) allow an alternative CBL to be used for locations without approved Economic Load Response registrations based on the existing alternative CBL rules for Economic Load Response registrations, which require that the alternative CBL be more accurate than the default CBL; (3) change the CBL at locations with approved Economic Load Response registrations from the economic CBL at the time of settlement to the economic CBL prior to the Load Management Event; and (4) clarify that PJM will not use the registered economic CBL if it is maximum base load, which can under-represent load reductions, and instead will use the three-day measure with SAA.
Additionally, for locations with approved Economic Load Response registrations, PJM proposes to add language requiring that CSPs do the following: (1) for Load Management Events outside the mandatory capacity availability period (i.e., voluntary events), validate that end-use customers for a particular registration have reduced load before submitting energy settlement data for each Demand Resource type, unless the registration is composed of mass-market customers, in which case the CSP does not need to validate each customer’s load reduction but must submit energy settlement data for either all customers or no customers, unless otherwise approved by PJM; and (2) for Load Management Events during the mandatory capacity availability period, only submit energy settlement data for each Demand Resource type if the CSP also submits associated load data to validate the customer’s load reduction for purposes of calculating capacity compliance.