Mike Bryson, vice president – Operations, Stu Bresler, senior vice president – Markets, and Suzanne Daugherty, senior vice president – Finance, CFO and Treasurer, gave their Year in Review presentations at the PJM Annual Meeting of Members in Cambridge, MD, Tuesday afternoon.
Joe Bowring of the Market Monitor gave an overview of the 2015 State of the Market report.
Bryson touched on a number of Operations and Planning initiatives, including the 2016 PJM Winter Peak, market evolution of fuel over a 10-year period and declining electricity demand growth.
PJM had 9,100 megawatts of generation deactivated and 6,600 MW in new generation connected. In addition, the RTEP transmission projects placed in service represented $5.3 billion in improvements. This includes baseline, network upgrades and supplemental projects.
Bryson noted the accomplishments in gas-electric coordination, including the establishment of a dedicated team which looks at a daily risk analysis for gas-fired generation. The team also has initiated outreach to local distribution companies and gas generation.
One of the biggest notes from gas-electric coordination was moving the day-ahead award timing from 4 p.m. to 1:30 p.m. The timing allows for gas-fired generators to know their commitment by 1:30 p.m., which gives them until 2 p.m. to acquire their gas supply and meet the new 2 p.m. interstate pipeline nomination deadline.
“The linear state estimator went live last year,” said Bryson, “We’ve had great performance so far, and it has helped us take phasor measurement unit (PMU) data quality to the next level. We are not only checking for bad data flags, we are actually assessing whether or not we trust the values measured by the PMUs.”
Bryson also noted the implementation of the Dispatch Interactive Map Application, which provides enhanced situational awareness to include visibility to behind-the-meter generation.
Bresler touched on a number of significant accomplishments, including improved market results, the Clean Power Plan and initiatives such as Capacity Performance. He also discussed challenges such as the growth of distributed energy resources and integrating renewable and intermittent generation.
Bresler looked at the success of the first base residual auction involving Capacity Performance, held in August, 2015. He noted that PJM continues to work with stakeholders and members to refine and implement changes and improvements to the process, such as education sessions for the performance assessment hour ramp rate and training for dispatchers and members.
Improved Market Results
Bresler reinforced what Bryson said earlier, looking at the success of the Day-Ahead Market timing.
“The good thing about the changes in the day-ahead market timing is that it enables gas-fired generators to know the electric market commitment prior to securing transportation for natural gas,” said Bresler. “It’s a big success story for us.”
He also noted PJM’s progress on uplift, specifically indicating that due to PJM’s enhancements to price formation and improved vigilance with respect to reliability commitments, uplift charges are at their lowest levels since 2012.
Of the 93 proposals submitted in the 2014/15 Long-Term Regional Transmission Expansion Process window, the PJM Board of Managers approved 11 market efficiency planning projects. Those projects cost $59 million. The Board approved 26 projects for 2015 Window 1 and 2015 Window 2. The $111.8 million in cost estimates for the projects were based on final cost estimate provided by proposing entity.
Dealing with Uncertainty
Bresler noted that PJM’s Demand Response has captured much of the existing distributed energy resources in the region. The topic will be discussed in depth at the General Session on the morning of May 18.
INTERREGIONAL COORDINATION, BILLING, TRAINING AND CUSTOMER SERVICE
Daugherty touched on what she called the “interaction” topics.
Daugherty looked at activities between MISO and PJM interfaces, both for the past year and on-going.
She noted the work of the PJM/MISO Joint & Common Market Initiative which has resulted in enhanced day-ahead market-to-market coordination procedures and removal of a $20 million market efficiency transmission project cost threshold between the two RTOs.
In 2015, PJM issued nearly 47,000 Continuing Education hours and saw a 19 percent increase from 2013 in Simulation Hours awarded. Respondents gave the training an average 4.5 out of a possible 5.0 satisfaction rating.
pjm.com and On-Line Tools
Daugherty pointed out the success of on-going improvements to pjm.com. She singled out the revamped Markets and Operations page and the refreshed tools such as Data Viewers and Emergency Procedures. She mentioned the positive response for both Member Community and revamped Inside Lines.
Daugherty highlighted PJM’s rededication to customer service and pointed to the success of the PRiDE customer service initiative.
“If you’re not serving the customer, your job is to be serving someone who is,” said Daugherty.