Friday, December 14, 2018

PJM MRC/MC Preview: Oct. 25, 2018

Below is a summary of the issues scheduled to be brought to a vote at the Markets and Reliability and Members committees 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.

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

1. PJM Manuals (9:15-9:35)

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

A. Manual 3A: Energy Management System (EMS) Model Updates and Quality Assurance (QA). Revisions developed to clarify the process for considering external bulk electric system facilities for modeling.

B. Manual 13: Emergency Operations. Revisions developed as part of PJM’s comprehensive security-threat review.

C. Manual 11: Energy & Ancillary Services Market Operations. Revisions developed to address FERC approval of Tariff changes related to a new day-ahead pseudo-tie transaction product designed to address overlapping congestion for units pseudo-tied out of PJM.

D. Manual 28: Operating Agreement Accounting. Revisions developed to address FERC approval of Tariff changes related to a new day-ahead pseudo-tie transaction product for units that are pseudo-tied out of PJM.

2. RPM Credit Requirement Reduction Clarifications (9:35-9:50)

Members will be asked to endorse draft Tariff language to remove an apparent overlapping credit reduction provision for qualified transmission upgrades, to clarify milestone documentation requirements for internally financed projects, and to clarify that capacity market sellers should submit requests for reductions.

3. Transmission Constraint Penalty Factors (9:50-10:05)

Members will be asked to endorse the joint PJM-Independent Market Monitor package developed at the special Market Implementation Committee sessions related to transmission constraint penalty factors and draft Manual 11 and Manual 33 revisions, as well as Operating Agreement and Tariff language. (See “Transmission Constraint Relaxation Removed,” PJM Market Implementation Committee Briefs: Sept. 12, 2018.)

4. FERC Order 831 – Offer Caps (10:05-10:20)

Members will be asked to endorse draft Manual 11 language that describes the long-term automated process for price-based offers greater than $1,000/MWh. (See “Automating Offer Confirmation,” PJM Market Implementation Committee Briefs: Sept. 12, 2018.)

5. 2018 Reserve Requirements Study Results (10:20-10:35)

Members will be asked to endorse the 2018 Reserve Requirements Study results. (See “IRM Study,” PJM PC/TEAC Briefs: Oct. 11, 2018.)

6. Regulation Market Pricing Issue (10:35-10:55)

Members will be asked to endorse a problem statement and issue charge to address recent regulation market clearing price issues as well present a proposed solution. (See “Regulation,” PJM Operating Committee Briefs: Oct. 9, 2018.)

7. Summer-only Demand Response (10:55-11:20)

Members will be asked to endorse either of two proposals to better value summer-only demand response resources. One proposal was endorsed by the Summer-Only Demand Response Senior Task Force, and the other was developed by EnerNOC. (See Plan Would Reduce PJM Capacity Curve Through Peak Shaving.)

Members Committee

Consent Agenda (1:20-1:25)

Members will be asked to endorse proposed Tariff and OA revisions developed by the Governing Documents Enhancement & Clarification Subcommittee.

1. Opportunity Cost Calculator (1:25-1:45)

Members will review progress to date on PJM’s review and approval of the Monitor’s opportunity cost calculator and then be asked to approve proposed OA Schedule 2 revisions related to opportunity cost calculators. (See “PJM, Monitor Come to Agreement on Opportunity Cost Calculator,” PJM MRC/MC Briefs: Sept. 27, 2018.)

2. M15: Cost Development Manual Biannual Review (1:45-1:55)

Members will be asked to endorse draft revisions to Manual 15 developed through the required biannual review, which include addressing terminology inconsistencies and updating the Handy Whitman Escalation Index.

3. Market Seller Offer Cap Balancing Ratio Proposal (1:55-2:10)

Members will be asked to endorse proposed Tariff revisions that would change how PJM estimates the expected future balancing ratio used in the default market seller offer cap. The proposed method would take the average balancing ratios during the three delivery years that immediately precede the Base Residual Auction using actual balancing ratios calculated during RTO performance assessment intervals (PAIs) of the delivery years, along with estimated balancing ratios calculated during the intervals of the highest RTO peak loads that do not overlap a PAI for any preceding delivery year with less than 360 intervals (30 hours) of RTO PAIs. (See “Balancing Ratio,” PJM Market Implementation Committee Briefs: July 11, 2018.)

4. Transmission Constraint Penalty Factors (2:10-2:25)

Members will be asked to endorse proposed Tariff and OA revisions related to transmission constraint penalty factors. (See MRC item 3 above.)

5. Super Forum (2:25-2:40)

Members will be asked to endorse a proposed problem statement and issue charge related to potential enhancements to the stakeholder process developed in response to feedback gathered in the Stakeholder Process Super Forum held on July 25, 2018. (See Poll: PJM Stakeholder Process Imperfect, Necessary.)

6. 2018 Reserve Requirements Study Results (2:40-2:50)

Members will be asked to approve the 2018 Reserve Requirements Study results. (See MRC item 5 above.)

7. Nominating Committee (2:50-3:00)

Members will be asked to elect members of the 2018/19 Nominating Committee.

— Rory D. Sweeney

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