EnerNOC: Pay customers for total demand response cuts

Energy management applications firm EnerNOC has filed a petition with the Federal Energy Regulatory Commission (FERC) to protect customers who participate in demand response in the PJM Interconnection (PJM) region.

The petition is aimed at resolving the uncertainty created by a joint statement issued earlier this month by PJM and its Market Monitor, and at ensuring that demand response customers continue to receive full compensation for their contributions to grid reliability in PJM.

EnerNOC says its regulatory affairs team is working to ensure that existing PJM market rules are maintained so customers are not underpaid for verifiable load reduction activities that support PJM grid reliability.

“EnerNOC firmly believes that end-users participating in demand response should be compensated for actual, verified load reductions provided to the grid, and this should not be limited by what their load happened to be in the previous year,” said David Brewster, president of EnerNOC. “The PJM and Market Monitor position is that if a customer reduces its real-time demand from 25 megawatts to 5 megawatts in response to a system emergency, but the customer’s peak demand from the previous year was only 10 megawatts, then none of the load drop from 25 megawatts down to 10 megawatts should be compensated. This is impractical and unfair.”

Read more here …