Max Load Reduction in DRHUB

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Max Load Reduction in DRHUB DRS June 17, 2017

Focus of this presentation: Maintaining up to date Max Load Reduction number remains crucial for PJM reporting accuracy Incorporating a validation check on the offered MWs in the Real Time and Day Ahead Markets on Markets Gateway will help to avoid errors and typos in offered MW amounts and improve PJM system accuracy 2

Example: Registration offers in Markets Gateway 80.00 70.00 60.00 65.00 70.00 71.00 50.00 MW 40.00 30.00 20.00 10.00 0.00 Econimic offers (MW) Actual Max Load Reduction Expected Max Load Reduction 3

The CSP shall provide the load reduction kilowatt capability for each method which represents a reasonable estimate of the location s expected hourly energy load reduction (at the retail meter) that will be performed during a system emergency when wholesale energy prices are high and the resource participates in the wholesale market. The load reduction kilowatts capability may be significantly different than the capacity commitment or the economic energy offered into wholesale market on a daily basis. The load reduction capability should not reflect the entire load for the location unless the location expects to reduce all loads during a PJM emergency when participating in the wholesale capacity and/or energy market. If Generation will be used to reduce all of the load at the location and the location will reduce load with other load reduction methods then the Generation load reduction capability should reflect the expected load after the other load reduction methods have been deployed (this will allow the sum of each load reduction method capability to reflect the total load reduction capability for the location). 4

1. Location with Economic registration only The CSP shall provide the MAX load reduction kilowatt capability for each location on the registration which in sum equals to the highest offer for this registration. If the CSP desires to offer more kw in Markets Gateway (MG) than the registration s current Max load reduction number then the CSP shall update one/all the location s Max load reduction number before offering this amount in MG. 2. Location with Load Management DR Full registration only The CSP shall provide the MAX load reduction kilowatt capability which is a reasonable estimate of the location s expected hourly energy load reduction that will be performed during a system emergency. 3. Location with Economic and LM DR Full registrations under the same CSP The CSP shall provide the MAX load reduction kilowatt capability which equals to the highest of the options 1 & 2 above. Can be updated on either Economic or DR Full registration and will be copied over to the remaining one. 5

Location is in Max Load Reduction for location shall equal to Economic reg only Highest offer in MG (in case of >1 locations on the registration should be a sum max load reductions for all locations) LM DR Full reg only Reasonable estimate of the energy load reduction during system emergency Should be modified when The desired offer in MG is higher than the current Max load reduction Reduction Methods have been updated or more accurate reduction estimate was evaluated Economic & LM DR Full under same CSP Highest of Max load reduction for economic and LM DR Full The highest max load reduction of 2 registrations has changed 6

Registration view: Registration Maximum Load Reduction Capability is a sum of locational Maximum Load Reduction Capabilities. 7

Potential future change: PJM would like stakeholder feedback Market Gateway will place a limitation on the Econ.Max. MW amount that will equal to Maximum Load Reduction 8