VALLEY FORGE, Pa., May 16 /PRNewswire/ -- More than 150 state and
federal regulators, consumer advocates, electric utilities, curtailment
service providers, technology companies and others developed action plans
to increase demand response at PJM Interconnection's Demand Response
Symposium in Baltimore, Md. earlier this week.
Demand response is defined as reducing electricity use when demand is
high instead of producing additional electricity.
"Demand response is an economical way to reduce the need for more
electricity supplies," said Andrew L. Ott, PJM senior vice president -
markets. "Seeing it fully realized, however, will take a great
collaborative effort of diverse stakeholders in the industry, not just PJM
alone. These stakeholders came to the table this week and defined further
the work needed to make this happen and ideas on overcoming the barriers."
The symposium participants focused on three topic areas: data
management and automatic metering infrastructure (AMI), demand response
customer education and training, and the coordinating of demand response
with transmission planning and capacity auction processes. The topic areas
were identified in the Demand Response Roadmap that resulted from PJM's
first demand response symposium last year.
Demand response already is a component of the capacity auction process,
Ott said. "The results of the recent annual auction for capacity show the
continuing trend of more demand resources participating. We're seeing the
equivalent amount of load being reduced that would otherwise require the
output of a 600 megawatt generating plant."
Demand response can be achieved at the wholesale level with major
energy users such as industrial plants curtailing power use and receiving
payment for participating. At the retail level, where demand response is
developing through involvement of various state agencies and stakeholders,
consumers participate in programs to curtail use. Programs vary but may
enable consumers to commit in advance to curtailing electricity use at
certain times or to make real-time decisions using switches on air
conditioners and water heaters that are controlled by their utilities.
Advanced metering for all customers will expand significantly the
measurement of responsiveness to price and to grid emergencies.
"The burning platform for demand response to happen involves a change
in the marketplace," said Ohio Public Utilities Commissioner Paul
Centolella in a kick-off panel discussion. "The rising cost of generation
capacity and fuel, the falling cost of communications and control
technology, living in a carbon constrained environment, and the parallel
need for a smart grid to support a digital economy are driving factors for
demand response."
Centolella stated that understanding customer behavior will be a
barrier in implementing demand response because the industry is largely
comprised of engineers, lawyers and accountants not people who have studied
customer behaviors.
In addition to Centolella, other presenters were Kim Pizzingilli of the
Pennsylvania Public Utility Commission, Alan Friefeld of the Maryland
Public Service Commission and Robert Lieberman of the Illinois Commerce
Commission. Frank Magnotti of Comverge and Wayne Harbaugh of Baltimore Gas
and Electric (BGE) also presented.
Companies such as BGE are learning about customer behaviors through
pilot programs such as their Smart Energy Savers Program, which includes
AMI, energy conservation and dynamic pricing, and, which was presented at
the symposium.
The results of the two-day discussions will soon be posted to the PJM
Web site and provide the basis for the development of demand response in
the PJM region during the coming year.
PJM Interconnection ensures the reliability of the high-voltage
electric power system serving 51 million people in all or parts of
Delaware, Illinois, Indiana, Kentucky, Maryland, Michigan, New Jersey,
North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, West Virginia and
the District of Columbia. PJM coordinates and directs the operation of the
region's transmission grid, which includes 6,038 substations and 56,250
miles of transmission lines; administers a competitive wholesale
electricity market; and plans regional transmission expansion improvements
to maintain grid reliability and relieve congestion. Visit PJM at
http://www.pjm.com.
SOURCE PJM Interconnection
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Related links:
http://www.pjm.com
CONTACT:
Paula DuPont-Kidd of PJM Interconnection,
Toll Free: +1-866-PJM-NEWS (756-6397), or +1-610-666-2200
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