PJM Pays Customers to Cut Power Loads
In an attempt to alleviate stresses on the power grid in the
Mid-Atlantic region this summer, the PJM Interconnection L.L.C. has
initiated a pilot program under which it will pay electric
customers to reduce their electric loads during emergency
Under its customer load-reduction program, PJM will pay market
participants that have the ability to self-generate via on-site
facilities or that can measurably reduce their loads though other
means (conservation) during PJM emergency events. PJM's program,
which still is awaiting FERC approval, began July 8 and is expected
to remain in effect until Sept. 30.
PJM said it initiated the program in response to FERC's May 17
order announcing a number of interim measures that industry could
take to increase generation supplies and improve the reliability of
the nation's transmission grid this summer.
Eligible candidates must be PJM members that can completely
disconnect from the grid and supply their own power load via
self-generation, or be able to reduce a "measurable and verifiable
portion" of its load via conservation/efficiency measures or other
methods, according to PJM.
Specifically, candidates must be able to reduce their load by at
least 100 kW during a minimum of 10 hours between July 8-Sept. 30,
be able to achieve full reduction within one hour of PJM's request
to reduce load, be available between the hours of 9 a.m. and 10
p.m. seven days a week, and meet certain metering requirements. The
metering equipment must be capable of providing "integrated hourly
kWh values.....with a maximum of two percent error end-to-end," and
be able to measure actual load before and after a reduction
PJM said the $5,000 annual membership fee and the $1,500
application fee will be waived for participants during the pilot.
PJM noted that it will pay the appropriate zonal locational
marginal price or $500/MWh, whichever is higher, to pilot
participants that reduce their electric loads during emergency
"We are excited about this program that will provide an
important resource during times of high electricity usage. The
program will augment the region's well-established emergency
procedures," said Bruce Balmat, vice president of system
operations. Further information on PJM's load-reduction pilot can
be found on its website www.pjm.com.
PJM operates the Mid-Atlantic energy and capacity markets. It
administers almost 8% of the nation's electric power supply, with a
pooled generating capacity of more than 58,000 MW and a membership
of more than 190.
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