Former Governor Florio Addresses Members Committee

The Members Committee endorsed two proposals at its May 21 meeting, which concluded the 2015 PJM Annual Meeting. The proposals – an uplift-related issue on combustion turbine lost opportunity cost and a revision to the tariff for residential measurement and verification – were both approved by the Markets and Reliability Committee on April 23.

Former New Jersey Governor Jim Florio gave the keynote speech at the meeting. Florio, who is now with an environmental law firm, said factors such as coping with peak load pricing, coupling formats, distributed generation and microgrids as resiliency mechanisms are all contributing to the current transformative nature of the business. He said the PJM members are uniquely positioned to help people gain an understanding of, and implement, market and industry-wide changes.

“Our goal is to manage change. We need to bring people in if the system is going to work. You are up to the challenge,” Florio said.

The MC endorsed the proposal to revise rules regarding the treatment of combustion turbine lost opportunity cost. The proposal is based on one developed by the task force and it incorporates an amendment to address excluding a startup cost payment when a qualified unit ran for a portion of its day-ahead committed period.

The residential demand response measurement and verification proposal adds one year of transition to the tariff revisions that the MRC and MC endorsed earlier this year.

The tariff revisions were updated to include an additional delivery year to the transition plan since the revisions may not become effective before the annual capacity auction. PJM was able to bring the proposal to the Members Committee after the Supreme Court decided that it would hear the appeal of a ruling that would restrict the role of demand response in regional power markets.