Committees & Groups

Issue Details

DR as an Operational Capacity Resource: Clearing of Limited DR in RPM

In the current implementation of the Limited and Extended Summer Demand Resource Reliability Targets in the RPM auctions, the Targets are represented as minimum requirements for the higher valued Annual and Extended Summer resources. This means that as long as the auction procures sufficient Annual and Extended Summer Resources to satisfy the minimum requirements, any procured resources in excess of the PJM Reliability Requirement can be provided by resources with lower availability and reduced response requirements, such as Limited Demand Resources. The effect and unintended consequence of implementing minimum requirements for the Annual and Extended Summer products in the RPM auction algorithm is to reinstate a vertical demand curve for the procurement of annual resources, which leads to boom bust pricing cycles detrimental to attracting investment in the market. In contrast, a sloped demand curve dampens the price and resource adequacy volatility characterized by boom-bust cycles. The Task Force will look at ways to [from Problem Statement]: • More directly limit the amount of Limited Demand Response that can be cleared above the quantity specified in the reliability analysis

Proposed Timeline

Issue initiated: 6.27.2013
Work begins: TBD
Target Completion: 2.1.2014
Actual Completion: TBD

Issue Details

Stakeholder Body Capacity Senior Task Force
Issue Catalyst PJM
Issue Status Closed
Manual Changes No
Agreement Changes Open Access Transmission Tariff, Operation Agreement, Reliability Assurance Agreement
  • Stakeholder Process Step

  • Completed Approved
  • Completed Education
  • Completed Interest
  • Completed Design
  • Completed Options
  • Completed Packages
  • Completed Consensus
  • Completed Review
  • Completed Completed