PJM Will Require 24-Hour Power Demand Response

Starting June 1, 2027, grid participants must be ready to curtail power use at any hour of the year.

Updated on Oct. 12, 2026 in Utilities

PJM Will Require 24-Hour Power Demand Response

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PJM Interconnection will transition to a 24-hour, year-round demand response availability requirement beginning June 1, 2027. The Federal Energy Regulatory Commission approved the proposal, which also institutes a new calculation method for customer winter peak loads.

Why it matters

These changes aim to ensure demand response resources provide reliable capacity throughout the year, better aligning their value with the performance requirements of traditional power plants. By mandating constant availability, grid operators seek to maintain stability during all hours.

The 2027/2028 Base Residual Auction cleared 7,298.6 megawatts of unforced capacity at a price of $333.44 per megawatt-day. Facilities must now be prepared to respond to grid notifications within 30 minutes at any time.

The players

PJM Interconnection

This is a regional transmission organization that coordinates the movement of wholesale electricity in all or parts of 13 states and the District of Columbia.

Federal Energy Regulatory Commission

This is the independent federal agency that regulates the interstate transmission of electricity, natural gas, and oil.

The details

To comply with the new rules, facilities must automate their curtailment sequences or provide 24-hour staffing to handle overnight dispatch. Winter peak load is now officially defined as the hour ending 9 a.m. on five coincident peak days between December and February, with staffing availability ineligible as an excuse for delays.

March 2025: PJM submitted the formal demand response proposal.
May 5, 2025: FERC accepted the PJM proposal.
June 1, 2027: New 24-hour demand response availability rules go into effect.
2027/2028 delivery year: The new requirements first apply to capacity delivery.

Market Landscape

These regulations represent a shift toward aligning demand-side management with the rigid performance standards of legacy generation assets. This move positions the grid to handle increasingly variable supply and demand conditions by treating load management as a 24/7 reliability asset.

Large-scale utility customers and facilities participating in demand response programs must now plan for 24-hour readiness rather than traditional daytime hours. Those failing to automate their systems or provide continuous staffing may face operational challenges or loss of capacity accreditation.

The takeaway

Entities relying on demand response income should prepare for the operational costs of 24/7 dispatch capabilities. The industry is trending toward total integration of load management into the standard reliability grid.