Company executives say they are confident that DR will continue to grow despite the EPSA ruling that threatens its continued participation in PJM.

PJM officials said they are optimistic that demand response will continue its role in capacity and energy markets although only 30% of current DR will be immediately eligible under the RTO’s proposed response to the EPSA decision.

Questions multiplied faster than answers last week following an appellate court ruling that threw out FERC's jurisdiction over demand response (DR) compensation.

PJM’s plan to implement new demand response rules in time for the May capacity auction are in doubt following a FERC order requiring the RTO to provide more information to support its proposal.

FERC approved PJM’s proposal to cap the amount of Limited and Extended Summer demand response that clears in the annual base capacity auction, an action expected to increase capacity prices.

The volume and magnitude of changes PJM is attempting to impose on demand response raise the question of whether the high-flying sector is still a growth business or one in retreat.

After two marathon committee meetings failed to narrow choices, members will vote beginning today on more than a dozen proposals to make demand response more flexible and eliminate arbitrage opportunities in capacity auctions.

Chances for consensus appeared dim last week as PJM moved to implement caps on limited demand response over the objection of load serving entities. MD's PSC threatened a FERC challenge.

Amid complaints that the issue has not been fully vetted, members of the Capacity Senior Task Force are voting on four proposals to cap the volume of limited demand response that can clear PJM’s base capacity auction.

FERC's technical conference on capacity markets elicited sharply differing views on a variety of design concepts and technical issues.