Beginning with a report on the base residual auction, and moving through load forecasting, market efficiency projects and Order 1000, the Markets and Reliability Committee heard updates on a number of topics at its May 26 meeting.
Stu Bresler, senior vice president – Markets, briefed members on the results of PJM’s base residual auction for capacity.
Bresler said there were two drivers behind lower prices in this year’s auction – a lower load forecast and a large amount of new gas-fired combined-cycle generation clearing for the first time in the auction.
Tom Falin, manager – Resource Adequacy Planning, presented the draft results of the 2016 installed reserve margin study.
After examining the study, PJM found three assumptions that required further investigation:
- Load model selection process
- World modeling and the capacity benefit of ties
- Ambient derating of generators in the summer period (rating the unit in high temperatures)
PJM recommends keeping the current load model selection process with one change – modifying the process to recognize the annual peak can only occur in the peak summer week.
Paul McGlynn, senior director – System Planning, reviewed a draft of changes to the MISO/PJM Joint Operating Agreement language regarding targeted market efficiency projects. MISO and PJM have been developing solutions that they both expect to provide relief to areas identified as having historical market efficiency and congestion issues.
PJM reminded market sellers with capacity resources of the deadline to update data in Markets Gateway for the June 1 market day. Market sellers need to act by May 31 at 10:30 a.m.; failure to act will result in capacity resources not being offered into the Energy Market starting June 1.
Members can follow instructions to update availability, create new schedules and send questions to PJM’s Customer Service at email@example.com .
The committee also heard a number of first-reads, including two ongoing discussions of proposals:
- Changes to parameter limited schedules to permit more flexibility within Capacity Performance
- Transmission substation equipment in Order 1000. If issues surrounding the equipment can be solved by transmission owner upgrades, they should be be excluded from the Order 1000 competitive window process
- Problem statement/issue charge related to External Capacity Performance Enhancements, regarding the implementation of pseudo ties before the 2017 base residual auction
- Proposed Manual 11: Energy & Ancillary Services Market Operations revisions to incorporate real-time values
- Proposed revision to the Energy Market Uplift Senior Task Force charter to incorporate the scope of the recently approved problem statement and issue charge on virtual transactions
- Recommendations of the Earlier Queue Submittal Task Force
- Proposed charter for the Transmission Replacement Processes Senior Task Force (formerly the End of Life Senior Task Force)
- Proposed revisions to the previously approved distributed energy resources problem statement
- Proposed revisions to Manual 14D Attachment L regarding joint-owned resource communication model
- Stakeholder motion to add replacement resources as an additional acceptable reason for early capacity replacement in Manual 18
- Draft charter for the Seasonal Capacity Resources Senior Task Force
Endorsements – PJM Manuals
- Manual 03: Transmission Operations – periodic review
- Manual 11: Energy & Ancillary Services Market Operations – approved a new problem statement/issue charge related to manual revisions required regarding day-ahead scheduling reserve eligibility
- Manual 13: Emergency Operations – periodic review
- Manual 14E: Merchant Transmission Specific Requirements – merchant network upgrades and reorganization for readability
- Manual 36: System Restoration – lessons learned from the annual restoration drill and periodic review