PJM’s Economic Load Response program enables demand resources to voluntarily respond to PJM locational marginal prices (LMP) by reducing consumption and receiving a payment for the reduction. Using the day-ahead alternative, qualified market participants may offer to reduce the load they draw from the PJM system in advance of real-time operations and receive payments based on day-ahead LMP for the reductions.

The economic program provides access to the wholesale market to end-use customers through CSPs to curtail consumption when PJM LMPs reach a level where it makes economic sense.

Energy Market Growth
The growth in participation by end-use customers since 2002 has been significant. The graphic shows the increase in total megawatt-hours (MWh) of demand response provided through CSPs from year to year.

Volume (MWh) of Demand Response Participation in the PJM Market