MIC Adds Level to Black Start Unit Work

The Market Implementation Committee covered a number of topics – ranging from black start units to actions by the Federal Energy Regulatory Commission – at its March meeting Wednesday.

The committee approved by acclamation an amended problem statement and issue charge that added another level (Phase 2) to the current working issue on black start units and annual revenue requirements, this one to address minimum tank suction level costs. Monitoring Analytics, PJM’s independent market monitor, provided additional information.

PJM continued the discussion on what is now Phase 1 of ARR for new black start units (issue tracking), presenting the solution packages for consideration.

Stakeholders also reviewed proposal packages for the spot-in transmission service for energy imports from NYISO (issue tracking) as a first read.  This has been a working issue for several months. Discussion focused on possible expansion to include other seams-related topics with all PJM neighbors.

A stakeholder dropped its proposal package from consideration, preferring to advocate for a comprehensive joint process among the grid operators rather than address energy imports on a piecemeal basis.  PJM could not support the proposal because it could not guarantee the results of a financial impact analysis or agree to any associated cost or surplus allocation.

Stakeholders and PJM discussed updates on fuel cost policies, the approval process, and the associated Manual 15. On February 3, the FERC’s ruling on hourly offers accepted a significant portion of PJM’s filing with modifications, including timelines for review of new and existing resources, components of cost clarification and dispute resolution clarification.

PJM reviewed frequently asked questions and reminded market sellers to submit their fuel cost policies by March 15 to guarantee the review is completed by May 15. The independent market monitor presented its suggestions for changes to Manual 15.

PJM updated the committee on Notices of Proposed Rulemaking from the FERC.

The first NOPR update addressed uplift cost allocation and transparency, focusing on real-time uplift costs associated with deviations based on a cost causation method and increase transparency. Comments are due by April 10.

The second NOPR involves fast-start resources and price formation. The NOPR has five proposed requirements on price setting in energy and ancillary services markets and transparency. PJM filed comments with the FERC on Feb. 28.

Other committee business