This is an updated version of a story that ran briefly in the October 19 edition of Inside Lines.
Ongoing PJM efforts in response to the recent notice of proposed rulemaking by the Federal Energy Regulatory Commission and the publication of a virtual transactions paper were among the topics discussed at the October 19 Members Committee webinar.
The FERC issued a notice of proposed rulemaking on addressing settlement intervals and shortage pricing triggers.
The notice requires organized markets to settle real-time energy and operating reserve transactions financially at the same time interval that it physically dispatches those resources.
Stan Williams, director – Compliance and Settlements, and Adam Keech, senior director – Market Operations, presented on sub-hourly settlements and shortage pricing.
In response to stakeholders, PJM may develop a proposal to settle its energy market and ancillary services on a five-minute basis in the Real-Time Market, consistent with pricing and dispatch. PJM would continue to settle its day-ahead market on an hourly basis.
In addition, PJM currently schedules real-time interchange transaction settlements on a 15-minute basis and settles them on an hourly basis. PJM may propose interchange transaction settlements on a 15-minute basis by combining the appropriate three five-minute intervals to capture the impacts of curtailments and have them reflected in prices and settlement.
Williams and Keech emphasized, however, that the process is ongoing and noted PJM continues to solicit suggestions and comments from stakeholders. PJM has until November 30 to develop and file its comments.
PJM has set up a mailbox for stakeholders to submit questions and suggestions for consideration as PJM develops its reply to the Notice. Submit any questions or suggestions to: PriceFormationNOPR@pjm.com.
In the paper, PJM made recommendations regarding virtual transactions and hopes the paper will open a broader dialogue on the issue through the stakeholder process.