PJM Economic Demand Response is **voluntary**. You decide when to cut usage. If you can't respond, there are **no penalties**.
If you reduced load right now in PSE&G (New Jersey), this is your gross revenue rate.
Most businesses fear Demand Response because of "Emergency" programs that threaten penalties. Economic DR is different.
To participate in PJM Economic commercial/industrial programs, you generally need:
Facility in PJM Territory (PA, OH, NJ, MD, DE, DC, IL, VA, WV)
Interval meter (AMI) capable of recording hourly usage.
Ability to drop at least 100 kW of load (or aggregate multiple sites).
You are paid the real-time Locational Marginal Price (LMP) for every MWh you reduce below your baseline. If the price is $500/MWh and you reduce 1 MW for 4 hours, you earn $2,000. Checks are typically issued monthly or quarterly via your CSP (Curtailment Service Provider).
PJM typically uses a "High 4 of 5" baseline. They look at your usage during similar hours on the last 5 weekdays, drop the lowest day, and average the remaining 4. This establishes what you "would have used."
Usually, no. If you already have a smart meter (which most commercial buildings do), you can participate manually (via email/text alerts). Automation equipment is optional but can increase earnings.