FERC Suspends PJM Tariff Changes Regarding Demand Response Measurement

June 6, 2011
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FERC has suspended PJM's tariff filing to revise the rules for measuring reductions from demand response resources which have cleared the capacity market, and ordered a technical conference on issues raised by protestors (ER11-3322).

For a load reduction to be recognized as compliance towards a previous capacity commitment, PJM has proposed requiring that an end-use customer's actual load reduction result in a metered load that is less than the customer's Peak Load Contribution.

FERC found that that PJM's proposed tariff changes have not been shown to be just and reasonable, and accordingly accepted and suspended PJM's filing for a five month period to become effective November 7, 2011, subject to refund. The Commission also directed Staff to convene a technical conference on the matter.

FERC declined to summarily dismiss PJM's filing as it applies to measurement of performance with respect to previously conducted auctions, as requested by several intervenors. "While the auctions have been conducted in the past, the measurement of performance will not be conducted until after parties have been on notice of the filing. Therefore, it is not apparent that this filing on its face is retroactive ratemaking, and the parties can address this issue at the technical conference," FERC said.

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