The Federal Energy Regulatory Commission (FERC) on Friday rejected tariff revisions proposed by PJM Interconnection to require demand resources be available year-round. The grid operator had proposed changes it said were meant to ensure a level playing field between generation and load reduction, but regulators rejected the changes.
"PJM has not shown that it is just and reasonable to calculate the Nominal PRD Value and associated PRD Credit based on the lesser of summer and winter load reductions," FERC said in its order. The proposed calculation "conflicts with the manner in which it calculates an LSE's capacity obligation, which is based on an LSE's demand during PJM's annual peak."
Demand response advocates say the decision "removes the sword that's been hanging over the market" and will allow the zero-emissions load reduction product to continue competing against dirtier power plants. Read more at UtilityDrive.com.