FERC approves PJM proposal to implement energy efficiency market restrictions
FERC has final say over wholesale markets, but must balance that against local authority over retail sales of electricity. So in instances where a relevant electric retail regulatory authority (RERRA) is authorized by the
commission to restrict the sale of energy efficiency resources, regulators have now signed off on PJM’s proposal for how to implement those restrictions.
The commission also approved PJM’s proposal to deal with EERs that cleared in a prior capacity market auction but are later restricted from participation in PJM’s market. In that instance, the seller can either obtain replacement capacity for the ineligible efficiency or “be relieved of capacity commitments.”
In December, FERC barred states from blocking energy efficiency from regional markets, despite approving a carveout for East Kentucky Power Cooperative. The utility had asked the Kentucky Public Service Commission to restrict energy efficiency resources from the wholesale market because the utility was trying to reduce spending on demand-side management, as electricity consumption declined.
