Concentrating more on education than votes, on July 13, the Market Implementation Committee examined complex issues, including auction specific bilateral transactions, release of capacity in the 2017/2018 delivery year, and fuel cost policy development.
Auction Specific Bilateral Transactions
The committee endorsed changes to auction specific bilateral transactions.
PJM had worked with stakeholders on the issue for several months, including holding special MIC sessions, following Capacity Performance changes.
Endorsed clarifications include:
- Rights and title transfer to the buyer, along with auction and bonus credits
- Performance obligations remain with the seller, including responsibility for charges resulting from performance
- Buyer indemnifies PJM if seller fails to pay deficiencies
- Rules around re-selling capacity rights, replacing commitments and reselling of megawatts
Release of Capacity in the 2017/18 Delivery Year Third Incremental Auction
Discussions continued on the release of annual capacity in the 2017/2018 delivery year third incremental auction.
The FERC required PJM to report by November 2016 on plans for how to handle excess capacity procured in the Capacity Performance transition incremental auction for the 2017/18 delivery year. PJM presented an approach consistent with the 2016/2017 third incremental auction. Stakeholders presented two alternative proposals.
PJM will discuss the alternate proposals at the August MIC.
Fuel Cost Policy
PJM and the market monitor provided an overview on the fuel cost policy. PJM is working with Market Analytics, the PJM independent market monitor, to develop fuel cost policy guidelines and an approval process.
The FERC ordered PJM to include provisions in the Tariff and Operating Agreement for market sellers to have a PJM-approved fuel cost policy in place prior to the submission of cost-based offers.
PJM must make a compliance filing by Aug. 16 and wants to have approved fuel cost policies in place for winter 2016/2017. The MIC will hold a special meeting on the fuel cost policy process July 27.
Other Committee Business
The committee heard an overview of details of the expiring PJM/NYISO Wheel Agreement, which PJM also presented to the Operating Committee, MC Webinar and Planning Committee. PJM will continue to update stakeholders.
The MIC continued education on several working issues – residual Auction Revenue Rights, benefits and costs associated with implementing additional operating parameters and potential solutions for spot-in transmission service for energy imports from the NYISO.
Issue Tracking on pjm.com has information on the working issues.
- Manual 11: Energy & Ancillary Services Market Operations (day-ahead scheduling reserve)
- Manual 29: Billing (periodic review process)
- Annual revenue requirements for new black start units (problem statement and issue charge)