Members Wednesday heard three proposals for streamlining the time consuming and error prone demand response registration process.
Current rules require Curtailment Service Providers to submit customer names to both the Electric Distribution Company and Load Serving Entity. The EDC and LSE have 10 days to approve or deny the registration. If either rejects the application — for example because they were mistakenly associated with the customer — the process has to begin from the start.
PJM presented the Market Implementation Committee with proposed improvements from the Demand Response Subcommittee, which reached consensus on changes for emergency registrations but split over three options for changing economic registrations.
All three proposals remove the LSE from the Relevant Electric Retail Regulation Authority (RERRA) review process and eliminate LSE review of economic registrations for contractual obligations. (PJM said there has never been a denial because of contractual obligations.) All three also continue the EDCs’ review for economic registrations.
Option 2A, which received the most support within the subcommittee, would remove the LSE from economic registration review process.
Option 2B, which would simplify the LSE role and remove the requirement that they approve the registration also had substantial support.
The final option, 2C, which would keep the LSE role only for Day-Ahead registration review, was the least popular.
Negative Dec
Although Option 2A received the most support within the subcommittee, PJM and others were concerned about its handling of negative decs.
Currently, if a customer registers for economic DR and participates in the Day-Ahead market, PJM places a negative dec on behalf of the LSE for any cleared bids to offset the LSE’s demand bid. PJM would no longer place the negative dec under Option 2A.
PJM’s Andrea Yeaton, who presented the issue to the committee, said eliminating the negative dec can make it difficult for PJM to clear the market.
Jung Suh, of Noble Americas Energy Solutions, LLC, said the negative dec also is important to LSEs. “It protects us from financial harm,” he said.
The issue will be brought to a vote at the next MIC meeting.
