Monday, August 21, 2017

FERC Staff OKs PJM Aggregation, DR Rules; Refunds Possible

FERC staff have greenlit — perhaps temporarily — PJM’s proposed Tariff revisions to allow increased participation from seasonal resources just in time for the RTO’s Base Residual Auction in May (ER17-367). The order remains subject to refund and further FERC action.

The proposals had been on a 60-day clock that would have allowed them to go into effect on March 24, but staff’s order keeps the door open for additional commission review once it regains a quorum of commissioners. (See “Loss of Quorum Means Filings to Become Effective Unless FERC Staff Acts,” PJM Market Implementation Committee Briefs.)

ferc pjm seasonal resources

Mehoopany Wind Farm | Old Dominion Electric Cooperative

The changes relax current rules prohibiting seasonal resources from aggregating across locational deliverability areas. The proposal also provides for additional winter capacity interconnection rights (CIRs) and modifies rules for measuring demand response performance in the winter.

PJM sparked controversy about a highly debated issue among stakeholders when it unilaterally filed the revisions with FERC in October under Section 205 of the Federal Power Act. The commission issued a deficiency notice in December, which PJM replied to in January. (See FERC Wants More Detail on PJM’s Seasonal Capacity Plan.)

While the order notes that protesters argued that PJM’s proposal was “an insufficient solution to the larger problem of the costly and inefficient nature of eliminating stand-alone sub-annual resources,” it nonetheless granted the effective dates PJM proposed: Jan. 19 for winter CIRs and June 1 for DR revisions. Requests for rehearing must be filed within 30 days.

– Rory D. Sweeney

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