MIC listens to reliability and resilience proposals

Resilience, RERRA and complex market solutions – stakeholders discussed it all at the Markets Implementation Committee meeting on Dec. 13.

PJM presented resilience from an RTO-wide overview, as well as an examination of market aspects for gas pipelines in emergencies.

Stephanie Monzon, liaison to PJM President and CEO Andy Ott, detailed how PJM is developing resilience plans for different areas.

She said that PJM is using the plans as a framework to prioritize issues – identifying what the risks are and how they are assessed. PJM looks at a threat landscape – from cyber attacks to regional infrastructure failure to pandemics – and the complexities and likelihood of the issue.

Joe Ciabattoni, manager – Markets Coordination, and Augustine Caven, senior lead engineer – Generation, gave stakeholders an update on the energy market implications of the gas pipeline contingency process. PJM and stakeholders reviewed the Operations aspects at the Dec. 12 Operating Committee meeting.

They summarized the gas pipeline contingency process for both “normal” mode (constrained electric/gas system conditions) and “conservative” mode (cyber/physical threats). They also covered the contingency diagrams for both scenarios.

Working Issues

Market Path/Interface Pricing Point

A joint proposal from PJM and Monitoring Analytics, PJM’s independent market monitor, to address market path/interface pricing point alignment was scheduled as a first read. But, after stakeholder debate and questions about the proposal, as well as the introduction of two new stakeholder alternative proposals, the first read was moved to January.

Stakeholders wanted more time to look at all the proposals and see if they somehow might be blended into a solution package. There are concerns that the current solution may cause legitimate market path transactions to be resettled, with potential referral to the FERC.

Transmission Penalty Factor

There was an update on discussions between PJM and the IMM to modify the Transmission Penalty Factor that is used in controlling and pricing transmission constraints. This topic will return to the January MIC for further development of design components and solution options.

Transmission constraint penalty factors are parameters used by the Security Constrained Economic Dispatch applications to determine the maximum cost willing to be incurred to control a transmission constraint. They are similar in concept to the operating reserve demand curves used for pricing reserve shortages.

RERRA

PJM presented a first read of a proposal developed in the Demand Response Subcommittee on the Relevant Electric Retail Regulatory Authority (RERRA) review of energy efficiency participation in wholesale markets. The subcommittee is working from the problem statement and issue charge approved at June MIC meeting.

Stakeholders are considering reforms for energy efficiency. Any rules developed would require that the providers of energy efficiency resources comply with any RERRA orders, ordinances or resolutions relating to the participation of energy efficiency in the PJM markets.

Other Committee Business

The first two proposals passed by acclamation.

For the third proposal, stakeholders endorsed the first package proposal, which will ensure that value is returned to firm transmission service customers if excess funds exist at the completion of each delivery year, after FTRs are fully funded.

  • Stakeholders also approved a problem statement and issue charge to address rules for aggregation of summer and winter demand response megawatts for the capacity performance annual requirement.
  • PJM presented a first read of a problem statement and issue charge to address financial transmission rights nodal remapping.

PJM has introduced the Drivers of Uplift page in the Energy Market section of pjm.com in response to stakeholder requests for more information and resources around uplift payments as part of market operations price transparency issue. The page contains information such as uplift drivers and frequently updated data from uplift reports.

Summer-Only Demand Response Task Force Debuts

The inaugural meeting of the Summer-Only Demand Response Senior Task Force took place after the MIC.

The task force will explore potential opportunities to value summer-only demand response resources through load-forecasting or other mechanisms that would serve as an alternative to supply-side participation in the capacity market. Stakeholders reviewed the charter, problem statement and issue charge. The next meeting will be Jan. 29.