The Markets and Reliability Committee returned a proposal that would revise rules regarding the treatment of combustion turbine lost opportunity cost to the Energy Market Uplift Senior Task Force.
PJM is concerned that the combustion turbine lost opportunity cost provides an incentive for units to offer and clear in the Day-Ahead Market but not in the Real-Time Market. The concern is that the units will get paid more. PJM proposes a maximum of two hours (start-up plus notification time) and a minimum run-time limitation of two hours for units. If PJM does not call on these resources, they will receive a combustion turbine lost opportunity cost payment. Resources that have a real-time startup and notification time or minimum run-time greater than two hours will not receive a combustion turbine lost opportunity cost payment unless they are prohibited from running in real-time by PJM for a reliability reason.
The MRC decided at its monthly meeting on March 26 to delay action until there was additional discussion on the proposal at the next meeting of the task force on April 1.
The MRC instructed the Planning Committee to take up the issue of uplift as an input to the Regional Transmission Expansion Plan.
The MRC also endorsed:
- Revisions to Manual 11 regarding demand bid screening
- Revisions to Manual 12 on operations and regulation testing
- Non-substantial FTR revisions on auction clearing deadlines, bilateral trades and tariff reference.
Materials for MRC presentations are available on pjm.com in the MRC section.