The Market Implementation Committee will consider changes to PJM’s real-time pricing mechanism, which RTO officials say is depressing energy and reserve prices.

The PJM Board of Managers may seek FERC approval for a staff proposal to change the way demand response clears in capacity auctions despite stakeholders’ rejection of the plan.

Our summary of the issues scheduled for votes at the PJM MRC and MC on 11/21/13. Each item is listed by agenda number, description and projected time of discussion, followed by a summary of the issue and links to prior coverage.

Federal Energy Regulatory Commission staff signaled Wednesday that the commission may require PJM to change rules requiring demand response providers to provide “sell offer plans” in order to participate in capacity auctions.

PJM proposed a change in its real-time pricing mechanism, saying the current methodology is depressing energy and reserve prices.

PJM will reduce the volume of imports that clear in next year’s Base Residual Auction – potentially increasing capacity prices – under methodology approved by the Planning Committee yesterday.

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.

The PJM Markets and Reliability and Members committees approved the following measures with little discussion at their October 24th meeting.

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.