At its Sept. 14 meeting, the Market Implementation Committee passed a proposal on the release of annual capacity in the 2017/2018 delivery year third incremental auction.
The committee voted in favor of the PJM proposal over the status quo; the proposal explains how PJM would release capacity as part of the Capacity Performance transition auction.
The Federal Energy Regulatory Commission required PJM to report by November 2016 its plans for handling excess capacity procured in the Capacity Performance transition incremental auction for the 2017/18 delivery year. The MIC did not pass two other proposals, one from the independent market monitor and one from a stakeholder.
The committee also endorsed revisions to Manual 15: Cost Development Guidelines. The updates are administrative and the result of the biennial periodic review process.
A vote on a second set of revisions to Manual 15, regarding the fuel cost approval process and policies, was delayed until October.
The FERC ordered PJM to include provisions in the Tariff and Operating Agreement for market sellers to have a PJM-approved fuel cost policy in place before the submission of cost-based offers. PJM made its filing in August.
At a Sept. 13 special session MIC on fuel cost approval processes, however, stakeholders raised a number of concerns.
Some of these concerns may be addressed at an upcoming MIC meeting. The concerns are clarifications and will be covered with frequently asked questions, further education and/or updates to the Manual 15 language. The other concerns are broader issues that PJM will address through the stakeholder process likely after the FERC ruling.
None of the changes would be effective until the FERC accepts PJM’s proposal.
The committee also delayed voting on operating parameter definitions in Manuals 11, 15 and 28 until its October meeting.
PJM also addressed stakeholder concerns regarding Day-Ahead Market results and when they are posted. PJM will address the concerns through the new Tech Change Forum, which will begin at the end of September.
Committee Working Issues and Updates
- Proposals for residual Auction Revenue Rights
- Proposed changes to the FTR undiversified credit requirement
- Black Start annual review and education
- ComEd Cordova Energy Center
- Extended transmission outages
- Inter-Regional coordination activity
- PJM/NYISO wheel modeling
- Market Implementation Committee charter (review and update)