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PJM CEO Says RTO Will Seeks Changes To Allow For More Aggregation of DR, Winter Resources
October 28,2016 In response to letters from Delaware Governor Jack Markell, Maryland Governor Larry Hogan, and U.S. Senator Chris Coons expressing concern about the inability of demand response to participate in the new capacity performance construct, PJM CEO Andy Ott has written to each political leader that PJM will seek FERC approval for tariff changes to facilitate aggregation of demand resources with winter-capable resources, to allow for greater DR participation in the capacity market. "Because of the concerns raised, and in an effort to improve the opportunities for demand resource and renewable resource aggregation, PJM will file with the Federal Energy Regulatory Commission several modifications to its existing rules to further the ability of demand response resources available principally in the summer months to aggregate with resources which have increased capability in the winter months. We believe these changes are a prudent way to ensure that seasonal demand response resources continue to have opportunities to participate in our capacity market. On the other hand, we are concerned that the alternative of simply delaying the implementation of the relevant capacity performance rules would not allow for the opportunity to jump-start this aggregation process and enhance these new aggregation business opportunities. Such a delay also would result in a significant negative investment signal to investors at the very time when we need to ensure development of a more efficient and cleaner generation fleet," Ott wrote to each of the political leaders. See the letters here
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