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The Federal Energy Regulatory Commission (FERC) has largely approved a number of changes to PJM Interconnection's demand response program.

Late last year, PJM offered a proposal to FERC to create a demand response category dubbed "pre-emergency load response, which can bid into the capacity auction and can be dispatched before an emergency is called," according to an article by Platts.

In addition, PJM sought to require demand response participants to respond within 30 minutes and reduce the minimum run time to one hour, among other changes. With the exception of resources that employ behind-the-meter generation or face environmental restrictions, PJM will categorize most resources as pre-emergency load response.

The grid operator was prompted to make such alterations in order to increase the efficiency of its demand response program. Under its prior regulations, PJM could not call upon demand response resources without citing an emergency and had to allow two hours for resources to respond.

In its ruling, FERC states that the pre-emergency load response proposal will allow PJM to cost-effectively and efficiently dispatch demand response resources.

However, FERC Commissioner John Norris dissented, believing the shortened response time for demand response resources will push resources out of the market and cause higher capacity prices. Furthermore, FERC has requested better justification for exempting behind-the-meter generation.

The regulator also ordered PJM to make more exceptions for the 30-minute response time beyond mass-market residential customers in order to include small commercial customers.

Read the full Platts article here.


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