PJM capacity prices would increase sharply but reliability would not be threatened if a recent federal court ruling eliminated demand response from wholesale markets, the Market Monitor said.

PJM will join in calls asking the D.C. Circuit Court of Appeals to reconsider its May 23 ruling on FERC Order 745.

The Demand Response Subcommittee will seek ways to improve measurement and verification of emergency demand response under an issue charge approved last week by the Market Implementation Committee.

Questions multiplied faster than answers last week following an appellate court ruling that threw out FERC's jurisdiction over demand response (DR) compensation.

Businesses with up to 100 kW in annual peak demand will be exempt from the new 30-minute notice rule for DR providers.

PJM rule changes since last year’s auction resulted in reductions in cleared generation imports and demand response. The mix of DR that cleared also changed, with more annual resources and less summer-only.

The 2017/2018 capacity auction cleared at $120/MW-day in most of PJM as restrictions on demand response and imports doubled prices in Virginia, West Virginia, North Carolina and much of Ohio. Prices were essentially flat in the East.

The 2017/2018 capacity auction cleared at $120/MW-day in most of PJM as restrictions on demand response and imports doubled prices in Virginia, West Virginia, North Carolina and much of Ohio. Prices were essentially flat in the East.

Consumer advocates asked the PJM Board of Managers to assess the impact of recent capacity market changes before making any new ones and criticized what they called the RTO’s new “inflexibility.”

Acting on the eve of PJM’s base capacity auction, the FERC Friday approved most of PJM’s new dispatch rules for demand response but rejected a plan to curb speculation in the auction, saying it created undue barriers to entry.