MRC Action: Peak Load Contribution Review
The Markets and Reliability Committee approved a request from the Capacity Senior Task Force for clarification regarding its issue charge on Peak Load Contri...

The Markets and Reliability Committee approved a request from the Capacity Senior Task Force for clarification regarding its issue charge on Peak Load Contribution (PLC) measurements of demand resources.

The issue charge directed the group to explore the interaction of PLC with end-user cost assignments and DR providers’ revenues from capacity market auctions.

“We had trouble figuring out what the problem was” because of the wording of the problem statement, said task force chair Sarah Burlew.

Aaron Breidenbaugh, of EnerNoc, opposed expanding the scope of the issue charge. Stability “has been sorely lacking” in demand response, he said.

David Scarpignato, of Direct Energy Business, said he would like more transparency on how PLCs are calculated by electric distribution companies.

The revised problem statement was approved 2.64-2.36. It breaks the issue into three problems:

  • Customer PLC Risk: Customers that want to be fully interruptible but don’t know their PLC three years in advance of the Base Residual Auction (BRA)
  • PLC Accuracy: Customer load changes are not incorporated in PLC until approximately one year later
  • Review accuracy and transparency of PLC measurements and — if changes need to be made — consider potential alternatives.

The revised problem statement will be assigned to the Demand Response Subcommittee because the task force is slated to sunset. The subcommittee was asked to decide by Dec. 1 whether any changes are necessary and to make such changes by July 2014 to allow time for FERC approval before the 2018 Base Residual Auction.

PJM contact: Sarah Burlew

Demand ResponseEnergy EfficiencyPJM Markets and Reliability Committee (MRC)

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