Regulatory agency backs demand response firm

The US Federal Energy Regulatory Commission (FERC) has backed the demand response firm EnerNOC with a decision that upholds the company’s compensation policies for customers.

The opinion goes against PJM, a grid operator that had complained that some demand response companies were overcounting customer load reductions.

In its order, FERC stated it currently “does not intend to institute any enforcement actions against (market participants) for registering customers in good faith and settling under the (Guaranteed Load Drop) baseline methodology,” and that “(g)ood faith participation in the PJM load management programs, including accurate customer (Guaranteed Load Drop) registration and aggregation during emergency events, is permitted.”

“EnerNOC is pleased that the Commission has delivered a swift order to bring clarity to this issue for the upcoming delivery year,” said David Brewster, president of EnerNOC. “We continue to assert that a customer’s compensation for demand response should be based on actual, verified load reduction, consistent with PJM’s existing market rules, and should not be limited by the customer’s demand for electricity in the prior year.”

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