MC Approves IRM Study

The Members Committee at its November 19 meeting endorsed the 2015 Installed Reserve Margin Study, which will re-set the installed reserve margin used in the Reliability Pricing Model capacity auction.

Tom Falin, manager – Resource Adequacy Planning, presented the study, which will re-set the IRM and Forecast Pool Requirement for delivery years 2016-2017, 2017-2018 and 2018-2019. It will also establish an initial IRM for 2019-2020.

The study examines the 11-year planning horizon, from June 1, 2015, through May 31, 2026.

Among the changes from previous studies, generator performance data is based on the 2010-2014 time period. The PJM and World load models are based on 2003-2012, as well as on the 2015 Load Forecast.

The study observes that the implementation of Capacity Performance rules alone should not result in a lower IRM because previous studies have always assumed that generators will perform at CP standards.

The reliability requirement in RPM auctions uses the FPR, not the IRM for measurement, because the FPR is largely unaffected by changes in the equivalent demand forced outage rate. That is the amount of time a unit is in demand but is unavailable because of a forced outage.

The MC also endorsed proposed Tariff revisions for the 2016/2017 third incremental auction and PJM’s sale or purchase of capacity necessitated by the capacity performance transition auctions.

MC elections:

Finance Committee:

  • Electric Distributor Sector: Charlie Bayless, NCEMC (expires 2016) and Steve Lieberman, ODEC (expires 2017)
  • End Use Customer Sector: Dave Evrard, PA Office of the Consumer Advocate (expires 2018) and George Waidelich, Safeway, Inc. (expires 2017)
  • Generation Owner Sector: Michelle Greening, Talen (expires 2018) and Joe Kerecman, Calpine (expires 2016)
  • Other Supplier Sector: Marguerite Miller, Credit Suisse (expires 2018) and Marji Philips, Direct Energy (expires 2017)
  • Transmission Owner Sector: Jim Benchek, FirstEnergy (expires 2018) and Frank Czigler, PSEG (expires 2017)

Sector Whips (one-year terms)

  • Electric Distributor Sector: Steve Lieberman, ODEC
  • End Use Customer Sector: Susan Bruce, PJM Industrial Customer Coalition
  • Generation Owner Joe Kerecman, Calpine
  • Other Supplier Sector Katie Guerry, EnerNOC
  • Transmission Owner Sector Jodi Moskowitz, PSEG

Members Committee Vice Chair (one-year term, rotates among sectors)

  •  End Use Customer Sector: Susan Bruce, PJM Industrial Customer Coalition