Demand Response

participate in demand response programs
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Participating in PJM demand response programs is an innovative way for some clients to reduce their electricity bill. Many of our clients have the ability to turn on backup generation or shift or reduce their electric load by altering use of their production equipment or consumption schedule. With our curtailment service provider “partnership”, we have the back office infrastructure and expertise to support demand response activities.

There are three PJM programs to participate in:

Capacity: On average, one 6-hour interruption is called per year, although this can vary from 0 to as many as 10, with a 2–hour advance notice. Payments are made monthly or quarterly, even if no interruptions are called.

Energy: Participant bids load reductions into the real-time or day-ahead market when prices are high.

Synchronous Reserve: Requires fast response within 10 minutes, duration for response is up to ½ hour, the frequency averages 30 times per year and special metering is needed.

What is PJM?

The Pennsylvania-Maryland-New Jersey Interconnection (PJM) has oversight of Generation and Transmission of power throughout much of the mid-Atlantic region. Because of substantial expansion over the past number of years, this Regional Transmission Organization now oversees power delivery to 61 million people. In fact, if PJM were a country it would be the 5th largest electric consumer in the world. Since the nature of electricity is that the power generated must always equal the power consumed, PJM is constantly scheduling its generation resources to match the load.

PJM now also has several Demand-Side Response (DSR) programs in place which can be utilized to help match generation with load. With these programs, energy consumers (end-users) who are able to reduce load and respond quickly, can be “scheduled” by PJM to curtail power just as PJM schedules generation resources to provide power. These DSR programs require that the end user reduce load (or bring on behind-the-meter backup generation) in exchange for direct payments from PJM. Curtailment Service Providers (CSP) partner with REG to administer the programs and work directly with end-users for implementation. Additional metering may be needed and a minimum of 100 kW load reduction is required.

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Recent Posts

FERC’s ‘Demand Response’ Rule Upheld by U.S. Supreme Court – Bloomberg

Today the Supreme Court ruled in favor of Demand Response programs. From Bloomberg:

FERC’s ‘Demand Response’ Rule Upheld by U.S. Supreme Court
Greg Stohr
January 25, 2016 — 10:03 AM EST Updated on January 25, 2016 — 10:14 AM EST

The U.S. Supreme Court dealt a blow to power generators, upholding a federal rule aimed at encouraging industrial consumers to cut electricity use.
The justices, voting 6-2, said the Federal Energy Regulatory Commission acted within its authority with the order, which sets rates for an energy-saving practice known as “demand response.” The court also upheld the formula used by FERC.
The ruling is a missed opportunity for the country’s biggest energy generators, which were seeking a chance to widen their profits. A decision invalidating the rule would have benefited NRG Energy Inc., FirstEnergy Corp., Exelon Corp., Dynegy Inc., Talen Energy Corp., Calpine Corp., Public Service Enterprise Group and American Electric Power Co.
Major energy consumers, including aluminum producer Alcoa Inc., backed the rule, as did smart-grid companies such as EnerNOC Inc., which help large consumers reduce their power use.
The case centered on the U.S. Federal Power Act, which lets FERC regulate rates only at the wholesale level and leaves retail regulation in the hands of the states.
Justice Elena Kagan wrote the court’s majority opinion. Justices Antonin Scalia and Clarence Thomas dissented. Justice Samuel Alito didn’t take part in the case because of a stock holding.


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