With the implementation of PJM’s forward capacity market, the Reliability Pricing Model (RPM), demand resources can offer demand response as a forward capacity resource. Under this model, demand response providers can submit offers to provide a demand reduction as a capacity resource in the forward RPM auctions.

If these demand response offers are cleared in the RPM auction, the demand response provider will be committed to provide the cleared demand response amount as capacity during the delivery year and will receive the capacity resource clearing price for this service.

There are 4,620 megawatts of demand response committed as capacity resources for the 2008/2009 delivery year that began June 1, 2008.

In addition to the forward RPM auction, demand response can be committed as Full Emergency Load Response three months before the delivery year begins in order to offset capacity payments. Both load-serving entities (LSEs) and CSPs can aggregate and register demand resources as Full Emergency Load Response on a nearer-term basis.

The requirements for Full Emergency Load Response, called Interruptible Load for Reliability (ILR) under the RPM construct, are the same as those of its predecessor, Active Load Management.

Demand Response and Energy Efficiency (PDF)
Load Management Performance Report 2009 - 2010 (PDF)