The Advanced Energy Management Alliance responded swiftly to a report released by the PJM Independent Market Monitor on the state of the market, including demand response. Jon Wellinghoff, Strategic Counsel of AEMA, stated:
“The Market Monitor has reported that demand response saved consumers in PJM $11.8 billion in the 2013 capacity auction, yet the demand response recommendations in the “PJM State of the Market 2013” report issued on March 13 do not reflect the realities of the state of today’s demand response capabilities. While some of the recommendations have previously been initiated and are making their way through the FERC process, most of the recommendations undermine the unique value and characteristics of demand response that have proven their contributions to the market. In fact, implementing these recommendations would result in reduced benefits for both the consumer and the electric grid.
“Markets are about consumer choice and one size does not fit all. Consumers are now able to participate in programs based on their own capabilities and needs; having flexibility in the way a consumer can contribute as a demand resource is critical to the consumer and the system.
“Demand response has been enormously successful and even ensured that PJM and ERCOT systems remained stable during the Polar Vortex. The recommendations in the report, however, would limit the ability of demand response to react to crises on the grid. Additionally, demand response programs offer highly sophisticated technologies and options that can provide many other services that benefit the grid and, even more importantly, the consumer.”