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

Shutdown of two FirstEnergy power plants may be delayed

FirstEnergy Corp. may not be able to shut down Hatfield’s Ferry and Mitchell power plants in southwestern Pennsylvania by Oct. 9, as the company has previously announced.
The grid operator that schedules electricity for 13 states including Pennsylvania believes that reliability could be compromised if the two coal-fired power stations retire within the next three months.
According to Valley Forge-based PJM Interconnection, the upgrades that would be necessary to the transmission infrastructure to compensate for the lost generation will not be ready by the proposed closing date. Therefore, it’s asking the company to continue operating the plants until reliability issues are addressed.
It’s not yet clear how long that will take.
Ray Dotter, a spokesman for PJM, said the next step is for the grid operator and the company to “identify solutions to the concerns and determine the amount of time required to put the solution into place.”
The Hatsfield’s Ferry plant in Masontown, Greene County, and the Mitchell plant in Courtney, Washington County, together have the capacity to generate about 2,000 megawatts of power.
FirstEnergy spokeswoman Jennifer Young said the company is reviewing PJM’s assessment, but is still going forward with plans to close the plants by Oct. 9.
“We will evaluate the information they have … and continue to have conversations with them,” Ms. Young said.
PJM doesn’t have the authority to force FirstEnergy to keep operating the plants, but no generator has ever denied a request by the grid operator to stay open for reliability reasons.
If FirstEnergy agrees to keep the plants open, it will be compensated for the cost to run them through a transmission charge to PJM customers. The rate will be set by the Federal Energy Regulatory Commission.
Akron, Ohio-based FirstEnergy announced it will shutter the two Pennsylvania plants because demand for electricity is down and plant retrofits would cost the company $275 million to comply with impending environmental regulations.
FirstEnergy cited similar reasons last year when it announced the retirements of nine coal plants, including the Armstrong plant in southwestern Pennsylvania.
Of those nine, however, PJM asked FirstEnergy to continue to operate three plants in Ohio until 2015 to avoid reliability issues. The company agreed to that request.

via Shutdown of two FirstEnergy power plants may be delayed | Electric Power News | Energy Central.

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