Commissioner Chang's Concurrence to Enerwise Global Technologies, LLC v. PJM Interconnection, L.L.C., EL23-104-000

Item E-13 | Docket No. EL23-104-000

I concur in today’s order, which finds that Enerwise Global Technologies, LLC (CPower) has not met its burden under section 206 of the Federal Power Act to show that the PJM Interconnection LLC (PJM) tariff is unjust and unreasonable.[1]  Further, I agree with the PJM Market Monitor that using actual metered interval data is the ideal method to measure and verify performance for demand-side resources.[2]  It is essential that resources that are procured and compensated in the markets actually deliver on their reliability and economic commitments. 

This case comes to FERC at a critical moment.  Supply-side resources in PJM are constrained and demand is rapidly growing.  PJM’s power prices are rising, as reflected in its most recent capacity auction results.[3]  Demand-side resources, when well-deployed, can help maintain system reliability and keep consumer costs down.  Thus, it is essential that the Commission, states, market operators, market participants, and other stakeholders focus on fully using the resources available to ensure reliability and address the rising prices in PJM.

Considering these needs, this docket raises important questions regarding demand-side resources’ ability to access the PJM market when metered interval data exist but are not accessible.  Specifically, in areas where metered interval data do not exist because residential customers do not have the requisite meters, PJM allows Curtailment Service Providers (CSPs) to use statistical sampling to first determine and select a subset of customers that represent the group the CSPs plan to use to provide demand response, and then measure, analyze, and verify their electricity usage during demand response events.  The sampling data are used to determine the amount of demand response resources that the CSPs can offer into and be compensated by the wholesale market.   On the other hand, in places where metered interval data exist, PJM requires the use of actual metered data, regardless of the availability of those data to the CSPs.  I am concerned that metered interval data are often difficult or impossible to obtain for third parties interested in deploying demand-side resources, which highlights a potential gap where CSPs in areas with metered interval data may face a barrier to participation in the PJM market.  This restriction in demand-side resources’ access to the market would reduce competition that otherwise could bring value to customers. 

More challenging, this potential gap occurs at the intersection of state and federal jurisdiction, as state regulatory commissions have authority to determine whether distribution utilities must provide third parties with metered interval data from retail customers.  By comparison, FERC regulates PJM’s tariff and market participation rules and must consider both PJM’s interest in ensuring demand response resources perform, and the ability of those resources to access the wholesale market.  

As the order indicates, the record before us is insufficient to establish the breadth of this potential gap, but a better record regarding data access barriers for demand-side resources might warrant further action by the Commission.  I encourage PJM to continue to monitor this issue to determine whether its existing rules might unnecessarily restrict access to its markets, thereby leaving potential cost-reducing measures unexplored. 

For these reasons, I respectfully concur.

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Judy W. Chang

Commissioner