CPP Demand Response Program
Criteria and Procedures
Demand response is the planned reduction of electricity usage by customers at times of high demand for the purpose of preserving the reliability of the transmission system. It is recognized that during a power shortage, the reduction of demand can have the same financial value as power supplied by electric generators. The PJM program allows companies known as a Curtailment Service Provider (CSPs) to obtain commitments from multiple retail customers to reduce their consumption by an agreed amount. The CSP then bids the total reduction into the energy market as if it were a power supply resource. The customer is paid a standby fee by the CSP and is compensated regardless of whether PJM calls for curtailment. The customers do not have to reduce their consumption unless PJM calls for it, which can occur on one to two hours’ notice up to 10 times per year for up to 6 hours each time.
Pursuant to Ordinance #144-11, CPP customers will be eligible to participate in the PJM Demand Response programs beginning June 1, 2011. Curtailment Service Provider (CSPs) approved by CPP may sign up CPP customers to participate in certain “demand response” programs that compensate the customer for being on call and standing ready to reduce consumption when necessary to preserve the reliability of the region’s transmission grid.
The demand response programs operate in the PJM Interconnection, a regional transmission organization that controls access to the regional transmission grids by utilities in parts of 13 states including Ohio. As an independent organization, PJM’s mission is to provide the utilities with reliable, equal access to transmission, to determine when system upgrades are necessary, and to allocate costs to all transmission system users. PJM also conducts a centralized energy market in which power suppliers bid their energy supplies into the PJM auction.
The following conditions apply to the participation in the Demand Response Program:
- CPP will administer the CSP approval process.
- The total amount of CPP customer demand participating in the program shall not exceed 30 megawatts of CPP’s peak customer load.
- The CSP must submit an initial written request to CPP for authorization to aggregate demand response identifying the CSP, the identity of customers and their curtailable demand, and such other information as CPP may require. The CSP must update this information and provide it to CPP as customers join and leave the CSP’s program. The specific conditions of participation will be posted on the CPP website along with a list of authorized CSPs and the total demand currently subject to CSP programs.
- Requests to authorize a CSP shall be approved on a first-come, first-served basis until the 30 megawatt limit is reached.
- The CSP must notify CPP of the commencement and the conclusion of any curtailment requests from PJM and the quantity of demand that was actually curtailed on a customer-by-customer basis.
- The CSP will be required to demonstrate that it is in good standing with PJM Interconnection, that it has executed all necessary PJM documents and that it has met the PJM credit requirements.
The demand response agreements will be directly between the CSPs and the retail customers, and neither the City nor CPP will have any responsibility for enforcing these contracts.
Curtailment Service Provider (CSP) Application
To obtain such authorization, a CSP must submit a written application to CPP using the CPP CSP Registration Form. The completed application should be mailed to the attention of
Manager of System Operations
Cleveland Public Power
1300 Lakeside Ave.
Cleveland OH, 44114
List of Authorized CSP’s:
Subscribed Demand Response: (kWh):
Remaining Demand Response (kWh):9,530