On September 19, 2024, the Federal Energy Regulatory Commission (“FERC”) denied Enerwise Global Technologies, LLC’s (“CPower”) complaint against PJM Interconnection, LLC (“PJM”) alleging that PJM’s Open Access Transmission Tariff (“Tariff”) was unjust, unreasonable, and unduly discriminatory because it prevents Curtailment Service Providers (“CSP”) from using approved statistical sampling rules to provide demand response for interval metered residential customers in PJM markets. As such, FERC denied CPower’s request to revise the Tariff to permit CSPs and electric distribution companies to use the PJM’s statistical sampling method regardless of whether the customers in an aggregation have interval meters.
PJM’s Tariff provides that, for interval-metered customers, CSPs must submit load reduction meter data to PJM or risk no payment for participation. For non-interval metered customers, however, PJM’s Tariff allows CSPs to report usage as measured by a PJM-approved statistical sampling model. CPower argued that the Tariff creates unjust and unreasonable energy and capacity market prices by preventing CSPs from using approved statistical sampling rules for interval metered residential customers. CPower also argued that the Tariff is unduly discriminatory against CSPs compared to electric distribution companies because electric distribution companies have adopted advanced metering infrastructure that they are unwilling to share with CSPs, allowing electric distribution companies to provide demand response with “no meaningful competition” from CSPs.
FERC found that CPower failed to demonstrate that the Tariff was unjust and unreasonable. FERC stated that CPower offered “no support” for its “broad” claims that CSPs cannot obtain the required meter data. Specifically, FERC explained that CPower did not demonstrate that third parties like CPower were unable to obtain a utility’s customers’ data that a CSP would need to participate in PJM’s demand response programs. FERC also found that CPower failed to demonstrate that the Tariff was unduly discriminatory or preferential. FERC stated that CPower had not shown that that the Tariff applies different terms to third-party CSPs in contrast to CSPs who are electric distribution companies. Rather, FERC explained that the Tariff requires all CSPs to provide meter data for interval metered residential customers. As such, FERC held that the Tariff was not unduly discriminatory or preferential.
While FERC held that CPower had not met its burden under section 206 of the Federal Power Act, FERC did acknowledge that third-party CSPs “may not be able to participate” in PJM markets if electric distribution companies are unwilling or unable to provide required meter data. But FERC left the issue of third-party access to this data, along with other issues involving advanced metering infrastructure, to the jurisdiction of state regulatory authorities.
After FERC denied the complaint, CPower argued that without PJM, FERC, or state commission action, investors will continue to be driven from residential demand response applications because CSPs are not able to access the data they need to participate—ultimately undermining the ability of wholesale markets to operate efficiently.
FERC’s decision, issued in Docket No. EL23-104, can be found here.
