Thursday, January 24, 2019

PJM Markets and Reliability Committee Preview: April 19, 2018

Below is a summary of the issues scheduled to be brought to a vote at the Markets and Reliability Committee on Thursday. 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 in RTO Insider. The scheduled Members Committee meeting has been canceled.

RTO Insider will be in Wilmington, Del., covering the discussions and votes. See next Tuesday’s newsletter for a full report.

Markets and Reliability Committee

2. PJM Manuals (9:10-9:40)

Members will be asked to endorse the following proposed manual changes:

A. Manual 14A: New Services Request Process. The revisions clarify language to match existing procedures and add language to describe in detail system impact study and interconnection feasibility study analyses. In January, a FERC administrative law judge issued an initial decision finding that PJM’s process is unjust and unreasonable because of a lack of transparency (EL15-79). On Feb. 20, PJM filed a brief on exceptions challenging the ruling.
(See FERC Judge Faults PJM, TOs on Transmission Upgrade Process.)

B. Manual 14B: Regional Transmission Planning Process. The revisions are the result of a periodic review that identified several administrative changes, including a revision to the generator deliverability procedure and adding the Ohio Valley Electric Corp. to the Western region study area definition.

C. Manual 28: Operating Agreement Accounting. The revisions address changes to comply with FERC Order 825 implementing five-minute settlements. Also makes a technical correction for the revenue data used to calculate settlements for generation resources. (See “Order 825 Implementation Moves Forward,” PJM Market Implementation Committee Briefs.)

D. Manual 11: Energy & Ancillary Services Market Operations. Removes offer cap revisions for price-based offers that were approved at the October 2017 MRC to comply with FERC Order 831. PJM discovered the revisions restrict market-based offers to $1,000/MWh, contradicting language in the Operating Agreement. The manual is being revised to say that market-based incremental energy offers may not exceed $1,000/MWh unless the cost-based incremental energy offer is more than that amount. In that case, the market-based incremental energy offer is capped at the lesser of the cost-based incremental energy offer or $2,000/MWh.

3. PJM External Capacity Filing (9:40-9:55)

Members will be asked to endorse proposed revisions to Manual 12: Balancing Operations to incorporate rules approved by FERC in November regarding reviews required for approval of pseudo-tied generators. (See “External Capacity,” PJM PC/TEAC Briefs: March 8, 2018.)

4. Balancing Ratio Issue Charge (9:55-10:10)

Members will be asked to endorse proposed revisions to the deliverables in the balancing ratio issue charge that the Market Implementation Committee is currently addressing. The revisions highlight the potential for changes to, and the underlying logic for, the market seller offer cap. (See “Stopgap Balancing Ratio OK’d Despite Questions,” PJM MRC/MC Briefs 10-26-17.)

5. Operating Committee Charter Update (10:10-10:20)

Members will be asked to approve proposed revisions to the Operating Committee charter to replace the term “spinning reserve” with “synchronized reserves.” The revisions will match the language of other PJM manuals.

— Rory D. Sweeney