Friday, December 14, 2018

PJM MRC/MC Preview: Dec. 6, 2018

By Rory D. Sweeney

Below is a summary of the issues scheduled to be brought to a vote at the PJM 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. NOTE: The meeting will be held at the DoubleTree by Hilton Hotel Downtown Wilmington instead of the Chase Center.

Markets and Reliability Committee

1. PJM Manuals (9:15-9:45)

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

A. Manual 03: Transmission Operations. Revisions developed to update the generator voltage schedule with new processes that require transmission owners to verify and submit voltage schedules via eDART, generation owners to review the schedules and the eDART contact to acknowledge the schedule. This will all need to be done annually. (See “Generator Voltage Schedule,” PJM Operating Committee Briefs: Nov. 6, 2018.)

B. Manual 10: Pre-Scheduling Operations. Revisions developed as part of a periodic cover-to-cover review.

C. Manual 14D: Generator Operational Requirements. Revisions mirroring those of item 1A above.

D. Manual 27: Open Access Transmission Tariff Accounting. Revisions developed as part of the biennial review.

E. Manual 06: Financial Transmission Rights. Revisions developed as part of the annual review.

F. Manual 11: Energy & Ancillary Services Market Operations. Revisions developed as part of ongoing revisions to the day-ahead timeline. (See “Day-ahead Market Timeline Manual Changes,” PJM Market Implementation Committee Briefs: Nov. 7, 2018.)

2. PRD Review for Capacity Performance Requirements (9:45-10:05)

Members will be asked to endorse at least one of several proposals developed by the Demand Response Subcommittee to address changes to price-responsive demand required for the Capacity Performance construct. The question is whether PRD should be required to reduce load in the winter like other CP resources. (See “Summer-only Demand Response,” PJM MRC/MC Briefs: Oct. 25, 2018.)

3. 2019 DASR Requirement (10:05-10:20)

Members will be asked to endorse proposed revisions to the day-ahead scheduling reserve for 2019. The 2019 calculation of 5.29% is a 0.01-point increase from the 2018 requirement. (See “Day-ahead Scheduling Reserve Recommendation,” PJM Operating Committee Briefs: Nov. 6, 2018.)

4. Surety Bonds (10:20-10:40)

Members will be asked to endorse at least one of two stakeholder proposals developed at the Credit Subcommittee related to allowing use of surety bonds as an acceptable form of collateral. (See “Surety Bond Use,” PJM Market Implementation Committee Briefs: Oct. 10, 2018.)

5. Gas Pipeline Contingencies (10:40-11:05)

Members will be asked to endorse a proposal endorsed by the Market Implementation Committee around gas pipeline contingencies. The proposal, originally developed by Calpine, would provide a broader scope of factors and time for which a unit can recover costs during and after a PJM fuel-switch directive. (See “Gas Pipeline Contingencies,” PJM Market Implementation Committee Briefs: Nov. 7, 2018.)

Members Committee

1. RPM Credit Requirement Reduction Clarifications (1:25-1:45)

Members will be asked to endorse proposed Tariff revisions 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.

2. PRD Review for Capacity Performance Requirements (1:45-2:05)

Members will be asked to endorse proposed Operating Agreement and Tariff revisions related to CP changes required for PRD. (See MRC item 2 above).

3. Gas Pipeline Contingencies (2:05-2:25)

Members will be asked to endorse proposed OA and Tariff revisions related to gas pipeline contingencies. (See MRC item 5 above).

4. Elections (2:25-2:35)

Members will be asked to elect members of the 2018-2019 Finance Committee, the 2019 sector whips and the 2019 MC vice chair.

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