PJM Demand Response (2026/2027): Capacity prices hit record $329.17/MW-day — an 833% increase from 2024/2025. Commercial facilities earn $120,147+ per MW annually through the Emergency Load Response Program. Economic DR participation is voluntary with zero penalties.
PJM capacity prices surged to a record $329.17/MW-day for 2026/2027 — securing only 139 MW above the reliability requirement. Commercial facilities now earn $120,147+ per MW annually just for being available to reduce load.
PJM's Reliability Pricing Model (RPM) determines how much the grid pays for demand-side resources. Record retirements, data center growth, and the ELCC framework have driven prices to historic highs.
| Delivery Year | Price (MW-day) | Annual Revenue (MW) |
|---|---|---|
| 2024/2025 | $28.92 | $10,555 |
| 2025/2026 | $269.92 | $98,520 |
| 2026/2027 | $329.17 | $120,147 |
Source: PJM Base Residual Auction results. 2026/2027 price hit the FERC-approved administrative ceiling.
Aging fossil-fuel generation retirements are outpacing new capacity integration, contracting supply.
Forecasted peak demand surging from data centers, EV charging, and building electrification.
Effective Load Carrying Capability now conservatively values intermittent and limited-duration resources.
Understanding this distinction is essential. The $120K+ revenue comes from Emergency/Capacity programs, while the "zero penalty" claim applies only to Economic DR. Know exactly what you're signing up for.
Claims of "$0 penalty" typically refer to Economic DR — which is indeed voluntary. The high-revenue figures ($50K-$150K/MW) come from Emergency/Capacity programs that carry performance obligations. Many providers achieve "zero risk" by registering only a conservative, guaranteed portion of your total curtailable load.
PJM requires a Curtailment Service Provider (CSP) for market participation. The top 4 CSPs control 85.6% of committed DR capacity (HHI: 2,295). But new models are breaking the traditional 30-50% revenue share.
CSP handles everything in exchange for 30-50% of all PJM payments. Your $120K becomes $60-$84K.
CSP provides gateway hardware & software for a fixed monthly fee. All PJM payments pass through to you.
Register as your own CSP. Full control, but you handle compliance, training (PJM LMS), and settlements.
| Utility Zone | 2024/2025 | 2025/2026 | 2026/2027 |
|---|---|---|---|
| PPL Electric Utilities | $18,063 | $98,520 | $120,147 |
| Met-Ed (FirstEnergy) | $18,063 | $98,520 | $120,147 |
| Penelec (FirstEnergy) | $18,063 | $98,520 | $120,147 |
| PECO Energy | $20,056 | $98,520 | $120,147 |
Annual revenue per MW of ELRP capacity. A facility with 2 MW curtailable load in PPL earns ~$240,294/yr for 2026/2027.
Your "Nominated DR Value" is calculated as Peak Load Contribution (PLC) minus Firm Service Level (FSL). Any reliable, repeatable curtailment strategy qualifies.
Cycle compressors or adjust temperature setpoints momentarily. Building automation systems can make this invisible to occupants.
Typical range: 100 kW - 2 MWShift energy-intensive manufacturing cycles or dial back large pumps. Avoid peak hours for non-critical production runs.
Typical range: 500 kW - 10 MWDim non-essential lighting via BAS integration. Modern LED systems can reduce draw by 30-60% without noticeable impact.
Typical range: 50 kW - 500 kWUse backup generators or battery storage to peak-shave — reducing grid draw without impacting internal operations.
Typical range: 200 kW - 20+ MWFERC Order 2222, new co-location rules, and the Synchronized Reserve Market create additional revenue streams for prepared facilities.
FERC Order 2222 removes barriers for distributed energy resource aggregations in wholesale markets. PJM requested an extension to coordinate across 12+ state commissions and hundreds of EDCs.
Facilities that can reduce load within 10 minutes earn supplemental revenue. SRM revenue increased 76.7% in 2024, reaching $11M across PJM.
Understand your facility's PLC and identify flexible load patterns.
HVAC, industrial processes, lighting — what can you adjust without impacting safety?
Compare revenue-share vs flat-fee providers to maximize profit retention.
Verify meters meet ANSI standards for PJM wholesale market participation.
Enter your curtailable load to see projected capacity payments at $329.17/MW-day
$329.17/MW-day is already cleared. The question is whether your facility captures its share of $120,147/MW in annual capacity payments.
Most commercial facilities have 10-30% flexible load they don't realize — that's $12K-$36K per MW in revenue left uncollected every year.
Get Your Free Load Assessment →No obligation. We analyze your interval data and show you exactly what you qualify for.