PJM is the largest regional transmission organization (RTO) in the U.S. and coordinates wholesale operations in all or parts of Delaware, Illinois, Indiana, Kentucky, Maryland, Michigan, New Jersey, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, West Virginia and the District of Columbia.
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Too often, energy risk management professionals focus on one side of the energy equation, specifically the supply contract. While this is certainly a critical piece of any procurement or strategic energy sourcing approach, it can lead to real value being left on the table for the end user through too much focus on the supply side. A thorough energy risk management strategy will account for the possibility of generating additional revenues through participation in various demand response programs. Of course, the value of those demand response programs will vary based on the type of consumer, their ability to curtail usage, availability of back-up generation and which of the various demand response programs they choose or are able to participate in . With these factors in mind, it is important to evaluate the options for demand response based on each customer’s unique profile.
Basics of Demand Response
Part 2 of the 4 Major Energy Developments in 2013 deals with two more trends that have impacted wholesale market prices this year:
As we near the end of the summer, it is worthwhile to examine trends that have had an effect on energy procurement in 2013. The focus will be specifically on the deregulated electric and natural gas markets, through the first two-thirds of 2013. The first two developments that will be covered in this blog are:
During the hot summer months in Texas, participants in the energy markets, including the independent system operator known as the Electric Reliability Council of Texas (ERCOT), turn their attention to making sure that there is sufficient generation available to meet power demand. While ERCOT is unlikely to have significant reliability challenges during the balance of 2013’s summer, there are concerns about whether this will hold true in the future. In order to address these concerns, some market participants, such as NRG, have argued that Texas should consider implementation of a capacity market, and preferably one similar to the capacity market in the Mid-Atlantic region of the country.