PJM Emergency Load Response Program (ELRP) Program Guidelines

PJM Emergency Load Response Program (ELRP)

Program Seasons & Hours

Summer: June - October & May, 10 AM - 10 PM ET

Winter: November - April, 6 AM - 9 PM ET

PJM may dispatch demand response outside the program period; however, non-performance outside program hours will not negatively impact payments.

Dispatch & Audit Notice

Dispatch and Audit: 30 minutes prior to the dispatch start time, or earlier if your site qualifies for an exemption
Additional Audit Notification: 2-week window in advance, then day-ahead notice of the date, then day-of notice based on qualified lead-time

Participation Options

Curtail electrical load or transfer load to a qualified generator or storage system.

Enrollment Strategy

Enel will work with you to determine your enrollment value based upon the electrical load pattern at your facility, your participation plan, and information regarding your site’s operations.

The enrollment value accounts for transmission line losses using a Capacity Loss Factor (CLF), PJM-determined adjustment factors such as ELCC (Effective Load Carrying Capability), and determines your “drop-to” target, also known as a Firm Service Level (FSL). The exact calculation for your site will be specified in your enrollment communications.

These values may be adjusted each year based upon historical performance and your feedback. Once the program period has started, your enrollment is fixed for the remainder of that time.

Lead Time Exemption

PJM has defined criteria for customers to qualify for 60 or 120 minute dispatch lead times. To qualify, your facility must meet one or more of the criteria outlined by PJM. For more information and to apply for additional lead time, please visit this FAQ.

Audit Requirements

If no dispatches take place within the given program year, PJM requires an annual payment-setting audit to demonstrate customers’ ability to deliver their enrolled kW value. If an emergency event occurs after the audit is conducted, your payments will be assessed based on your performance during the emergency event. Audits will last 2 hours and can occur in any month of the year.

Maximum Dispatch Duration

There is no limit to the length of a dispatch. Historically, the average length of a dispatch has been 3-4 hours.

Baseline Definition

There are two types of payments: Capacity and Energy. Each uses a different baseline methodology.

• Capacity Summer Baseline: Equal to the Peak Load Contribution (PLC). The PLC value is based on the participant’s average demand during the 5 highest peak hours of the 5 highest peak days on the entire PJM grid during the previous summer.
• Capacity Winter Baseline: Equal to the Winter Peak Load (WPL). The WPL value is similar to the PLC. However, it is based on an individual participant’s peak demand between the hours of 6am and 9pm EST on the 5 highest peak days from the winter 2 years prior.
• Energy Baseline (all seasons; not applicable in an audit): Based on a participant’s average demand pattern during the dispatch hours on the preceding days. This baseline only applies during an emergency dispatch, to capture real-time load reduction.

Performance Measurement

Capacity performance is the average difference between actual demand (kW) and the “drop-to target” during a dispatch, adjusted for ELCC. In order to receive full credit for participation, your electric load needs to remain at or below the “drop-to target” for the duration of the audit or dispatch.

Energy performance is the average difference between actual consumption (kWh) and the energy baseline, starting the moment when an emergency dispatch notification is sent.

*Energy payments are only available during an emergency dispatch, as an incentive to deliver any incremental amount of load reduction as quickly as possible.

Keys for Success: If you get a late start, over-performance during the later portion of a dispatch will compensate for under-performance at the beginning. In the event of an emergency dispatch, an immediate response will result in additional payments.

Payment Calculation

Payments are based on a site’s average performance across all category 2 emergency dispatch hours. If no category 2 emergency occurs during the program season, payments are based on performance during the annual audit or performance during a category 1 emergency.

Capacity payments are paid at a $/kW-year rate, which fluctuates annually based on PJM’s auction clearing prices. In the event of an emergency dispatch, energy payments are paid at a $/MWh rate. All payment rates are defined in your contract.

Any under-performance will negatively impact your payment for the given season, and may result in reduced enrollment and earning potential for future seasons.