At the Oct. 24 Members Committee Webinar, stakeholders heard how Capacity Performance has spurred generation owners to make investments that will better serve them in the capacity market.
Chantal Hendrzak, executive director – Operations Support, presented a progress report on the investments.
She said PJM is interacting with generation owners about the types of investments they are making in order to “firm themselves up” in response to Capacity Performance requirements.
To date, PJM has surveyed 100 units or approximately 62,000 megawatts of the 93,000 MW of total committed Capacity Performance for the 2016/2017 delivery year. Early observations of the survey results indicate that units are investing in a variety of different ways to improve reliability and flexibility.
PJM will continue to collect data on Capacity Performance-related investments because all units will need to meet the CP requirements by the delivery year 2020/2021.
The survey looked at how generation companies are making generator-specific investments in staffing, infrastructure and fuel supply. It also looked at specific categories within that – for example, for gas market product and service innovation, the investment categories included flexible demand, infrastructure and liquefied natural gas.
Financial transmission rights
Asanga Perera, manager – Market Simulation, detailed the impact of the recently issued Federal Energy Regulatory Commission order (Dockets EL16-6-001 and ER16-121-000) regarding financial transmission rights.
On Sept. 15, the FERC issued an order on PJM’s filling of October, 2015, which addressed revenue shifts and cross-subsidies between and among auction revenue rights and FTR holders due to over-allocation and FTR portfolio netting.
The Commission agreed with PJM that some elements of its position were unjust and unreasonable, it did require PJM to make specific reforms regarding balancing congestion and Stage One retired source points.
PJM is working with stakeholders and needs to submit its revisions to the FERC by Nov. 14 for implementation in June 2017. PJM expects to discuss the specifics of the anticipated compliance filing at the Market Implementation Committee on Nov.2, 2016.
Stakeholders heard two updates on interregional coordination.
The first was on interface pricing efforts with MISO, as well as information about pseudo ties and coordinated transaction scheduling. Details about projects with MISO are available at the Inter-Regional Planning Stakeholder Advisory Committee – MISO and at the Joint and Common Market.
PJM also looked at the cost allocation impact of replacing the current non-conforming interface between PJM and NYISO.
The transmission agreement between PSE&G and Con Edison of New York was created in the 1970s and rolled over pursuant to the PJM Tariff in 2012. In April of this year, ConEd notified PJM and NYISO that it was not renewing the agreement, effective May 1, 2017.