Capacity Program
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Rider 24 Demand Response Programs

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 Capacity Program 

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Customers who are able to reduce loads during periods of high electric demands can receive capacity credits for their ability to reduce electric consumption. The credits are paid monthly and are tied directly to the reduction in the amount of electric use and the capacity prices for that planning year. The times of reductions are determined by PJM (the transmission system operator), and they are limited to ten occurrences each planning year and for up to six hours duration for each event. Typically, the reductions are on summer weekday afternoons.

 

 

How It Works Savings Eligibility
Capacity Load Response Program A customer's ability to reduce load is registered with PJM. The customer is obligated to provide a specific, pre-arranged load response when PJM calls for Demand Response (DR), or be subject to a reduction in savings. Receive a monthly incentive payment determined by BGE based on the prevailing market price for capacity. All customers regardless of their electric supplier, with interval metering sufficient to measure the load reduction or on-site generator output.

 

To participate customer must have:

  • The ability to drop 100 kW or more of load
  • The customer sites can be aggregated together to reach the minimum 100 kW load reduction
  • An interval meter that can measure electric consumption in one hour increments
  • The ability to drop load within two hours of notification

Customer's Obligations
Customer receives the credits whether or not they are asked to reduce load.

  • The PJM Delivery Year is June 1 to May 31
  • The obligation to respond to PJM Emergency Notifications is for the period June 1 to September 30 of each year
  • The Emergency load response program requires a 1 year contract with BGE which corresponds to the Delivery Year
  • Customer must have an interval meter
  • PJM can call on the Emergency load response resources up to 10 times per year, for up to 6 hours per activation

Activation History - BGE Territory

Delivery Year Number of Events
2005 2
2006 2
2007 1
2008 0
2009 0
2010 3
2011​ 1​
*In 2009 all customers were required to perform a 1 hour test
 


Capacity Prices - BGE Territory

Delivery Year Zonal ILR Prices
2009-2010 $218.12
2010-2011 $174.29
2011-2012 $110.04
2012-2013* $133.46
2013-2014* $226.15
2014-2015*​

$125.47 Limited
$126.50 Ext. Sum.
$126.50 Annual​

*Preliminary Capacity Prices that are subject to change
 

 

Non-Compliance Summary
If a customer is unable to reduce their electric use, there are reductions in the amount of money the customer could have made. But, the reductions only apply to the non-curtailment amounts. For example if a customer agrees to reduce 200 kW of load and only reduces 160 kW, the fee is based only on the 40 kW difference. The fees cannot exceed the credits paid by PJM.
 
If no events are called, the customer will be required to perform a one hour test sometime during the summer.
 
Getting started with BGE's capacity program is easy! To Enroll:
If you'd like to enroll or have any questions, please e-mail Rider24@bge.com