1. PJM ©2008 Regional Round-up of Demand Response Developments Susan Covino PJM Interconnection A National Town Meeting on Demand Response Washington, DC June 3, 2008

2. PJM ©2008 www.pjm.com 2 Annual energy payments to curtailment service providers for economic activity.

3. PJM ©2008 www.pjm.com 3 Demand Response as Synchronized Reserve

4. PJM ©2008 www.pjm.com 4 Demand Resource Participation in Capacity Market Prior to RPM Implementation RPM Implemented

5. PJM ©2008 www.pjm.com 5 Regional Demand Response Symposia Two Demand Response Symposia to date –Identified Top Priority Opportunities for demand response –Development of a Demand Response Roadmap –Implementation plans for key roadmap actions Broad-based Event Planning Group Facilitated and focused discussions in breakout groups

6. PJM ©2008 www.pjm.com 6 Development of the Demand Response Roadmap Derived from a many sources (DR opportunities identified at the 07 Demand Response Symposium, MADRI state commission DR working groups, PJM DSRWG, and the NARUC/FERC demand response collaborative Provides a guide for better coordination of demand response development and activity between the wholesale and retail markets Organized around 5 functional areas: dispatch, data management, settlement, planning process and forward price signals Adopted unanimously by the MADRI steering committee in late 2007

7. PJM ©2008 www.pjm.com 7 Demand Response Steering Committee Purpose to develop demand response policy 14 outstanding demand response issues identified and prioritized by the DRSC Participants and PJM committed to addressing all of the identified issues –Resolution of wholesale market issues –Clarification and communication of retail market issues to the states

8. PJM ©2008 www.pjm.com 8 Load Response Application Evaluation of eLoadResponse complete Functional requirements and specifications for new and enhanced Load Response application complete –Calculation of CBL for settlements –Accommodate Energy Efficiency participation in the capacity market –Further automate transactions with curtailment service providers including settlement adjustments Roll-out of new Load Response application targeted for late 2008 or early 2009

9. PJM ©2008 www.pjm.com 9 Customer Baseline Rules for Economic Load Response Currently pending before the Commission Based on 5 years of experience Designed to ensure the integrity of demand response market participation Developed through a 14 month stakeholder process