1. Demand resource emergency energy measurement and verification
DRS
7/30/14

2. Existing Process – Emergency Energy settlements
Emergency Full DR registrations receive compensation for real time energy load reductions when dispatched
Real time energy load reductions based on:
If only an emergency registration then hour before event is CBL
If there is economic registration at time of settlement submission then use economic CBL
Current rules established to balance administration with load reduction accuracy

3. Catalyst for issue High volume of PJM dispatches
11 days in 13/14 DY to date
$86.5 mm
DR dispatch during non-summer months
DR dispatch during early morning hours
Multiple dispatches in same day
DR dispatch of several hours

4. Key issues Accuracy of the hour before CBL methodology
Cumbersome administrative process to use an economic CBL which requires an EDC review.
After the fact selection of CBL to use for settlements and process used to determine which registrations require settlement.
Use of economic CBL from economic registration when customer primarily participates in ancillary service market and economic CBL is conservative (“max base load”).

5. Issue1: Accuracy of Hour Before CBL
Rational for existing market rules
Economic CBL is more accurate approach and therefore use when available.
Use of 1 hour to represent multiple hours is not robust
Over-estimate: schools toward end of the day
Under-estimate: early morning event prior to business hours
Conclusion from prior empirical analysis
Administrative effort to collect historic meter data for RRMSE may not be worth the effort for CSP
DR resource may never be dispatched for emergency – why collect and process 60 days of historic data when it may not be used
Allow CSP to make decision on administrative effort after event but before submission deadline (60 days after the event).

6. Issue1: Accuracy of Hour Before CBL
Potential solution: Use current default economic CBL as emergency energy CBL
Impact:
Load reduction will be much more accurate and stable (mornings, afternoons, winter/summer)
More hourly data will be required to complete emergency settlement.

7. Issue2: Cumbersome administrative process to use an economic CBL which requires an EDC review.
Potential Solution: If we use proposed solution for issue 1 then this may no longer be an issue
CSPs will no longer submit economic registration when they only want to use default economic CBL
This will cut down workload for CSP and EDC that must review the registrations
CSPs submitted thousands of economic registrations from winter event for this reason.

8. Issue3: After the fact selection of CBL to use for settlements and process used to determine which registrations require settlement.
Potential Solutions:
Proposed solution for number 1 will help
Only use CBL on economic registration if economic registration in place prior to emergency event
This will eliminate cherry picking after the fact to use method that produces highest load reduction
Adopt the following energy settlements submission requirements:
Voluntary event (PJM does not measure capacity compliance) – CSP must receive confirmation from location that they reduced load during event in order for CSP to submit the settlement
If load is typically down and location did not do anything then it does not qualify for settlement (Example - location already down for the day)
Notification from CSP to Location does not qualify as confirmation from customer.
PJM will periodically request supporting information from CSP.
Lack of supporting information may result in referral to MMU and/or FERC OE
Mandatory event (PJM measures capacity compliance) – may only submit when capacity compliance records are also submitted
Determination of whether or not to submit a settlement for voluntary event is NOT solely based on difference between CBL and meter load

9. Issue4: Use of economic CBL from economic registration when customer primarily participates in ancillary service market and economic CBL is conservative (“max base load”).
Potential Solutions:
Use Emergency CBL if Economic CBL is Max Base Load.

10. Only change is to make default economic CBL the default emergency CBL
Example1
CSP submits Emergency registration for Location
Same process as today (no RRMSE test)
PJM has emergency event
CSP submits necessary load data to calculate CBL
At least 5 weekdays
CBL will be calculated based on standard economic CBL (high 4 of 5 with Symmetric Additive Adjustment)
Only change is to make default economic CBL the default emergency CBL

11. Example2
CSP submits Emergency registration and Economic registration for Location (prior to emergency event)
Emergency registration goes through same process as today (no RRMSE test)
Economic registration has standard CBL (passed RRMSE test)
PJM has emergency event
CSP submits necessary load data to calculate economic CBL
At least 5 weekdays
CBL will be calculated based on standard economic CBL (high 4 of 5 with Symmetric Additive Adjustment)

12. Example3
CSP submits Emergency registration and Economic registration for Location (prior to emergency event)
Emergency registration goes through same process as today (no RRMSE test)
Economic registration has alternative CBL (passed RRMSE test)
PJM has emergency event
CSP submits necessary load data to calculate standard economic CBL
At least 5 weekdays
CBL will be calculated based on alternative economic CBL

13. Example4
CSP submits Emergency registration and Economic registration for Location (prior to emergency event)
Emergency registration goes through same process as today (no RRMSE test)
Economic registration has alternative CBL = MBL (max base load)
PJM has emergency event
CSP submits necessary load data to calculate economic CBL
CBL will be calculated based on standard economic CBL (high 4 of 5 with Symmetric Additive Adjustment)