Asanga Perera, manager – Market Simulation, updated members on Stage 1A of PJM’s 10-year auction revenue rights analysis at the Transmission Expansion Advisory Committee on Nov. 9.
The proceeds from the annual financial transmission rights auction are allocated through auction revenue rights. PJM allocates ARRs through an annual multi-stage process and examines the feasibility of first stage ARRs for a 10-year period.
In its 2017 analysis, PJM observed several infeasible facilities, including a number of flowgates with MISO. The one internal infeasible facility is expected to be mitigated through reliability planning upgrades. As a next step, PJM will review the external infeasible facilities with MISO in the interregional planning groups.
Infeasibilities are caused because the model representation of transmission outages for any given period is different in the annual, long-term and monthly financial transmission rights auctions. This different representation of transmission outages causes flows from already approved FTRs to exceed facility flow limits.
PJM Markets is coordinating with the PJM and MISO Interregional groups to review these constraints for consideration in future targeted market efficiency project analysis and long-term proposal windows.
As part of the interregional coordination presentation, PJM updated its targeted market efficiency projects.
These projects are limited to historically binding market-to-market flowgates. Benefits are based on relieving two years of historical congestion, and four years’ worth of benefits must completely cover the project’s installed capital cost.
In the market efficiency presentation, PJM reviewed initial analysis results of proposals submitted to resolve congestion in the BGE/Pepco area.
PJM also presented projects resulting from generating deactivations, as well as an update to the Regional Transmission Expansion Plan that focused mainly on a first review of supplemental projects. The reviewed supplemental projects are largely in the conceptual and/or engineering stages of review and will be brought back for additional review and comment.
Stakeholders have the opportunity to review the projects, which are posted on the TEAC page. Stakeholders are also encouraged to use the Planning Community tool to continue the discussion.