PJM Effective Load Carrying Capability (ELCC)

Beginning June 1, 2025, PJM is implementing accreditation changes to demand response resources. Effective Load Carrying Capability (ELCC) rules help ensure that all capacity resources, including demand response, are accurately rated based on their expected performance during critical times. 

With this new policy in place, payments for each season (summer and winter) will be calculated as follows: 

Accepted Capacity: The adjusted demand response capacity that is eligible for payment after applying the Effective Load Carrying Capability (ELCC) factor. 

• Accepted Capacity = (Nominated kW x ELCC)
• Nominated kW =The agreed upon amount of capacity a facility is expected to reduce during a dispatch.
• Effective Load Carrying Capability (ELCC): Adjusts for a PJM-determined reliability contribution factor, updated annually. For the 2026/2027 delivery year, ELCC is 72% for demand response.

Price: Capacity auction clearing price.

Split (%): Revenue split outlined in your Enel Demand Response contract.

To receive full payment, you must curtail to or below your drop-to target for all hours of payment-setting events. If you do not fully curtail to your drop-to target, also known as your Firm Service Level (FSL), your payment will be reduced accordingly. However, you will never owe Enel money, even if you do not meet your full curtailment obligation.