Bresler Addresses External Capacity Issues at MC

At the Feb. 23 Members Committee meeting, PJM presented the actions taken by the Board of Managers regarding a proposal on external capacity resources developed by the Underperformance Risk Management Senior Task Force.

The PJM Board on Feb. 15 resolved to support PJM filing a proposal that would revise requirements for resources outside of PJM to participate as Capacity Performance resources. The proposal calls for the revisions to apply to both new and existing external resources. PJM plans to file the proposal with the Federal Energy Regulatory Commission shortly.

The revised rules are intended to better align requirements for external capacity resources with those of internal capacity resources. The changes address external resource modeling, deliverability standards for both initial and future years, and congestion management impacts.

At its January meeting, the Members Committee approved the revisions for new external resources that want to become PJM Capacity Resources, but have not yet cleared a capacity auction.  PJM staff recommended to the board the filing of the additional revisions specific to existing resources, which were not approved at the Markets and Reliability Committee.

PJM maintains that it is important for reliability and coherent market operation for rules to be in place for both new and existing external capacity resources to ensure they can reliably provide energy to consumers when needed.

Stu Bresler, senior vice president − Operations and Markets, said that PJM discussed the issue with FERC staff as stakeholders developed packages in the task force. FERC staff advised PJM to address the situation comprehensively, rather than in a piecemeal manner.

He added that the Board was very sensitive to the appearance of pre-empting the stakeholder process but felt that the issue had gone as far as it could in the process.

The committee also approved proposed tariff language for process enhancements for the Regional Transmission Expansion Plan related to the treatment of transmission substation equipment. This equipment was identified through FERC Order 1000 proposal windows and associated operating agreement revisions.

 Members endorsed a Phase One proposal from the Energy Market Uplift Senior Task Force. The packages are intended to make minimal changes to the current calculation of uplift costs in PJM, changing only components considered to conflict with the current methodology. The committee also endorsed a Phase Two proposal that updates allocation of uplift charges to include up- to-congestion transactions.