MIC Discusses Fast-Start and Energy Storage NOPRs

The Market Implementation Committee’s work on Notices of Proposed Rulemaking from the Federal Energy Regulatory Commission was a highlight at the committee meeting on Jan. 11. PJM gave presentations on the NOPR on fast-start resources and on energy storage and distributed energy resources.

The FERC issued the NOPR on fast-start resources on Dec. 15, as part of the price formation proceeding. Fast-start resources are those that can start up within a short amount of time, although the definition of which resources fall into this category varies by grid organization.

There are five proposed requirements that address the definition and treatment of fast-start resources, with respect to price setting in energy and ancillary services markets. PJM is continuing internal discussions in advance of the Feb. 28 deadline for comments to the FERC.

The FERC also issued a two-part NOPR on energy storage and distributed energy resources on Nov. 17.

The NOPR seeks changes and clarifications to details of requirements and/or definitions. PJM already complies with some of the energy storage requirements (for example, the FERC’s proposed minimum size requirement is 100 kilowatts, which is already PJM’s minimum size requirement).  PJM noted there are areas for additional discussion in future meetings, such as new bidding parameters for energy storage and duration requirements.

For distributed energy resources rule development, DER aggregation as it relates to resources injecting power onto the grid from behind a customer’s meter, is a new area for PJM and also being taken up in the MIC DER special sessions.  PJM will submit comments to the FERC by the Feb. 13 deadline.

The committee endorsed a proposed package and Manual 11 revisions for FERC Order 825, regarding shortage pricing. PJM also filed the five-minute settlement changes, as required by FERC Order 825 on Wednesday, Jan. 11.

The shortage pricing proposal is in response to FERC Order 825 directing PJM to invoke shortage pricing as soon as a reserve shortage is detected in real time, rather than waiting until the shortage is forecast for a sustained period of time, as is current practice. The committee discussed the proposals at the December meeting.

The committee approved/endorsed:

In other committee business, the committee:

  • Continued work on annual revenue requirements for new black start units,
  • Updated work on the recent FERC compliance filing impacting the annual ARR/FTR process,
  • Update on the seasonal capacity deficiency letter,
  • Update on the effort to add synchronized reserve events back into emergency procedures,
  • The Independent Market Monitor presented a report on replacement capacity in conjunction with its motion to lodge and for commencement of compliance process to the FERC,
  • Update on a new NYIS interface definition, effective May 1 (reflecting the PSE&G-ConEd wheel termination)