The Organization of PJM States Inc. has adopted a resolution urging the PJM Board of Managers to instruct staff to develop market rules “which optimize the participation and value of demand response” in the wholesale markets.

The resolution, sent to CEO Andy Ott on July 29, notes that 10,348 MW of the 12,000 MW in DR offered into the 2019/20 Base Residual Auction cleared. For the following delivery year, PJM will only purchase Capacity Performance products.

DR, which is mostly seasonal, has been a reliable resource that adds value to competitive markets, OPSI said.

“PJM’s planning process for the Base Residual Auction does not provide explicit recognition of the benefits from demand response except for those megawatts of demand response which clear in a PJM capacity auction,” the resolution said.

PJM’s Seasonal Capacity Resource Senior Task Force, whose charter was approved by the Markets and Reliability Committee in May, is studying rule changes to better allow for the participation of seasonal resources into the market once the base capacity product is eliminated. (See MRC Approves Charter for Seasonal Capacity Effort.)

Those resources now may offer in aggregate, but only one such offer was made during PJM’s transition auctions.

Proposals include allowing aggregate offers across locational delivery areas and permitting a seasonal product.

State consumer advocates pushed the PJM board at the RTO’s annual meeting in May to change Capacity Performance rules to encourage the participation of DR, energy efficiency and solar resources. (See Consumer Advocates, Enviros Press PJM on Seasonal Capacity.)

In order for new rules to be in place for the 2020/21 BRA, held next year, PJM must file them with FERC by late fall.

— Suzanne Herel