On Wednesday, for the second month in a row, stakeholders navigated through complicated issues at the Markets Implementation Committee.
Members deliberated when emergency/pre-emergency demand response resources can register as capacity performance resources, revisited state restrictions on energy efficiency resources aggregation rules and looked at the next step in the offer cap verification process.
Currently, DR resources with capacity commitments need to register before the delivery year begins and new customers cannot enter the market during the delivery year. Customers that can no longer reduce load (for reasons such as bankruptcy or a move) will need other customers in a portfolio to make up load reductions.
With Capacity Performance’s year-round participation, stakeholders suggested the current requirements should be revisited. PJM presented proposed solution packages developed in the Demand Response Subcommittee to address the extension of the registration window.
The solutions, which only apply to Capacity Performance-based registrations, would move the registration deadline from May 15 prior to the start of the delivery year to December 1 or May 31 of the delivery year. With Capacity Performance construct, an open registration window will allow customers to participate after the deliver year has begun which can increase reliability and reduce provider risks.
PJM also presented a problem statement and issue charge addressing price responsive demand. Price responsive demand was developed during 2010-12, prior to changes in DR availability requirements for Capacity Performance.
Price responsive demand requirements have not been updated to reflect the rule changes associated with Capacity Performance because no stakeholder was using the PRD product. PJM received and approved PRD plans for the first time in January 2017 for the 2020/2021delivery year, instigating the need to review the requirements.
Energy Efficiency Resources in Capacity Markets
Stakeholders also moved to the June MIC meeting a vote on the problem statement and issue charge addressing state restrictions on energy efficiency resource aggregation rules for participating in the capacity market. After an extended discussion at the April MIC meeting, PJM reworked the language, broadening parameters. Given the amount of language changes and the robust discussion, stakeholders felt they needed additional time to deliberate before voting.
Fuel Cost Policy and Offer Cap Verification
In an update on fuel cost policies and the transition process, PJM reminded market sellers to respond to PJM’s recommendations by May 8 in order to have a fuel cost policy in place by May 15.
As part of its presentation on the offer cap verification proposal (part of Federal Energy Regulatory Commission Order 831), PJM asked members for input as it formalizes the exception procedure. PJM is already in compliance with most of the order but needs refinement on the verification of forecasted cost offers above $1,000/MWh before the offer can be used to set a locational marginal price.
- Conforming revisions to Manual 6: Financial Transmission Rights related to the FERC order impacting the annual auction revenue rights/financial transmission rights process
- Proposal and governing document language for Pseudo-tied Generators and Dynamic Schedules Meter Correction (endorsed by the Markets Settlements Subcommittee)
- Problem statement and issue charge on variable operations and maintenance costs as part of fuel cost policies and the submission of cost-based offers
Other first reads
- Manual 28: Operating Agreement Accounting changes associated with financial transmission rights balancing congestion
- Problem statement and issue charge on default liquidation with provisions for liquidating reliability pricing model positions
- Problem statement and issue charge on delayed financial transmission rights auction postings
Other committee business