FAQ: PJM 2018 Enrollment FAQ

What are the new programs this year?

PJM’s legacy products—Limited Summer DR (LDR), Extended Summer DR (XDR), and Annual DR (ADR)—are being retired at the end of the 2017/18 Delivery Year (DY). Effective June 1, 2018, PJM is replacing these products with Base Capacity DR (BC) and Capacity Performance DR (CP). BC will be available for two years only, to help DR customers transition to CP. Effective June 1, 2020, CP will be the only product available within PJM’s Emergency Load Response Program (ELRP).

How are BC and CP different from LDR/XDR/ADR?

BC and CP are more similar than different from the legacy products. For example, in CP the availability window is identical to ADR’s; while BC’s availability window matches LDR months with XDR days and hours. The table on page 3 summarizes the availability window for all products. CP is different in a few additional ways:

• Enrollment values, and baselines, may vary between summer and winter, to engage organizations whose operational load and ability to curtail differ seasonally. More information about how enrollment values and baselines are calculated is below.
• PJM uses a different methodology to calculate performance which, in most scenarios, tends to favor the customer more than the legacy ELRP products. Please see your Enel X agreement for more details.

What is staying the same for these new products?

Everything else is staying the same. Namely:

• There will still be an annual payment-setting audit dispatch in late summer, if PJM calls no emergency dispatches. If a mandatory emergency dispatch is called after the summer audit, you are obligated to respond and your capacity payments for the delivery year will be based on your performance in the emergency dispatch.
• Energy payments for emergency dispatches are unchanged.
• Notification windows for DR dispatches are unchanged. If you were previously granted a 1-hour or 2-hour lead-time exemption and still qualify for it, then you will maintain that.
• You can request changes to your enrollment values prior to the start of each season. If you are enrolled in CP, this could mean changing your summer, winter, or both enrollment values. All requested changes are subject to review and availability of capacity.

Most importantly, there is absolutely no expectation for there to be more or longer dispatches in BC or CP. DR remains PJM’s resource of last resort to prevent a collapse of the grid, and will only be dispatched after all other generation resources have been exhausted.

How do I know whether my site(s) are enrolled in BC or CP?

As in years past, we will email your annual enrollment level and product information in the spring. Enel X balances revenue potential with dispatch exposure to secure the best opportunity for its customers each year. We are enrolling customers in CP only where there is a significant earnings premium relative to BC.

How will my enrollment level be determined for Delivery Year 2018/19?

Enrollment levels will be determined based on the difference between your PLC and your performance data from years past, or other relevant information if you are new to the program. Additionally, a small adjustment will be made for line losses (CLF) as required by PJM. If you are enrolled in CP, this will determine your summer enrollment level for June – October 2018 plus May 2019, and a similar methodology will be used to determine your winter enrollment level for November 2018 – April 2019.

How is my enrollment value calculated?

Your summer enrollment is calculated using the following equation: PLC – (Summer FSL X CLF). For example, if you have a PLC of 500 kW, an FSL of 200 kW, and your CLF is 1.1, then your enrollment for DY 2018/19 will be 500 kW – (200 kW X 1.1) = 280 kW.

Your winter enrollment value is calculated using a similar equation: WPL – (Winter FSL x CLF).

Definitions for PLC, WPL, FSL, and CLF are discussed below.

How is my Peak Load Contribution (PLC) calculated?

Your PLC is what PJM uses as the baseline for DR in the summer months (June – October, plus the following May in CP), where you are credited for whatever kW level you can drop to below your PLC. It is calculated annually by your utility based on your average usage during the five PJM system peaks during the prior summer. The five peaks used to determine your PLC for DY 2018/19 are:

How is my Winter Peak Load (WPL) calculated?

Your WPL is what PJM uses as the baseline for DR in the winter months (November-April). It is calculated annually by Enel X based on a PJM-defined methodology that uses your peak usage during the hours of 6:00 a.m. – 9:00 p.m. EPT on the five PJM system peak days from two winters prior. The five winter peaks impacting your WPL for DY 2018/19 are:

What is a Firm Service Level (FSL)?

Commonly referred to as a “Drop To” commitment, your FSL is the kW value to which you are expected to reduce your electricity demand during a DR dispatch. It is determined based on our analysis of your energy usage during previous program periods and dispatches, or during the enablement process for new sites. If you are enrolled in CP, your winter FSL may be different from your summer FSL.

What is a Capacity Loss Factor (CLF)?

Your CLF is a measure used to account for electrical line losses incurred from the point of generation, through transmission and distribution infrastructure, up to when it is delivered to your premises. For example, in order to deliver 100 kW to an end-use customer, a generator might need to produce 108 kW to account for the electricity that will be lost in transmitting across the grid. In this example, the CLF would equal 1.08. CLFs are determined by your utility based on your voltage class and/or delivery rate.

How will I be compensated in the Emergency Load Response Program?

Your capacity payments will be based on your average delivered kW up to your accepted/enrolled kW. Your payments may be adjusted to account for underper- formance, but you will never be subject to penalties from PJM. In the event of an emergency dispatch, you will receive additional energy payments for your real-time load reductions, irrespective of your kW demand relative to your baseline at the time of dispatch. This provides an incentive to drop as much load as possible. Please see your Enel X agreement for more details.

What is the default notification time?

PJM will provide Enel X with 30 minutes of advance notice when there is a grid emergency, and Enel X will relay that dispatch notice to regions where resources have been requested. Customers may be dispatched with less than 30 minutes to implement their energy reduction plan.

Can I qualify for an exemption from the 30-minute notification?

PJM has defined exemption criteria for a select set of customers who may qualify for longer lead times. Please read the Exemption FAQ for more information and fill out the questionnaire if you believe you qualify for one or more exemption criteria. If you have already received a longer lead time, you do not need to fill out the questionnaire again.

How will I be notified of a grid emergency?

Customers will receive notification via email and text message, therefore it is critical to maintain your contact information throughout the year. Log in to Enel X 24x7x365 to ensure your contacts are up-to-date and their email and phone numbers are accurate. Contact Enel X Support at support.EnelXNorthAmerica@enelx.com or +1 888 363 7662 with updates.

What if I can’t respond to the dispatch by the start time?

Performance calculations pay you for your average performance throughout the dispatch, so you will still have the opportunity to get paid for your energy reductions, even if you get a late start. Over-performance during the later portion of a dispatch will compensate for underperformance at the beginning of a dispatch.

Who should I contact if I have more questions?

Please contact Enel X Support at +1 888 363 7662 or support.EnelXNorthAmerica@enelx.com.