In 1997 The Pennsylvania-Jersey-Maryland (PJM) Interconnection was approved as the nation’s first independent system operator by the Federal Energy Regulatory Commission (FERC).
In 2001, PJM became the nation’s first regional transmission organization (RTO), a designation that granted PJM the ability to operate transmission lines in multi-state areas.
Today PJM coordinates the flow of wholesale electricity in 13 states on the eastern seaboard and the District of Columbia, and is the largest wholesale energy market in North America.
CPower helps organizations in PJM participate in several demand response programs.
- Emergency Capacity Program helps PJM maintain grid reliability by calling emergency events which require customers to adjust their power consumption. Participants pick a fixed level of consumption (Firm Service Level or FSL) and commit that when called upon they will consume no more than that amount of electricity. Events generally happen on hot summer afternoons and last 4 hours on average.
- Economic Program enables customers to increase demand response earnings by voluntarily responding to price triggers, as opposed to being called to drop load during emergency events or capacity shortages. While enrolled in this program, participants can choose specific hours to curtail load when the $/kWh reaches a pre-determined price trigger. Customers also significantly save on energy costs due to reduced consumption during these periods of high electricity prices.
- Synchronized Reserve Programs help the grid react to short-term disturbances. Each hour, customers may offer a price at which they’re willing to be available. If their offer is accepted, they receive at least their offer price and must be on-call to curtail within 8 minutes of an event notification. If their offer is accepted, they receive at least their offer price and must be on-call to curtail for up to 30 minutes with 8 minutes of an event notification.
- PA Act 129 Program allows participants to further augment the payments earned via participation in emergency capacity and/or economic programs. Pennsylvania’s Act 129, signed into law in 2008, set ambitious savings and demand reduction goals for the state’s large electric utilities such as PPL, PECO, FirstEnergy and others. Registrations are currently open for Phase III of Act 129, a five-year program that runs from 6/1/2016 to 5/31/2021.
Find out which of PJM’s programs should become part of
your energy management strategy.
Contact CPower and set up a complimentary energy evaluation for your business, conducted by
our team of engineers and consultants.