At the Markets and Reliability Committee meeting on Aug. 25, PJM and stakeholders discussed revisions regarding fuel cost policies and the recent revisions to the approval process, as contained in Manual 15: Cost Development Guidelines.
The committee will be asked to endorse these proposed revisions at the September MRC, contingent upon approval by the Federal Energy Regulatory Commission of PJM’s related compliance filing. PJM hopes to have a proposal of Manual 15 revisions to present to the board for approval at its October meeting.
PJM, Monitoring Analytics and stakeholders have been working on a solution through a series of special Market Implementation Committee meeting, culminating with the special session on Aug. 17 where PJM presented the basics of its hourly offers compliance filing with the Federal Energy Regulatory Commission.
The filing addresses the FERC’s order for changes in the implementation of hourly offers in the energy market, including cost-based offer requirements and a related new process for market participants to submit fuel cost policies.
PJM presented other changes to Manual 15, as part of the periodic review process. The changes, such as changing “unit owners” to “market sellers” can move forward separate from the fuel cost policy approval process changes to the manual.
Release of Capacity in the 2017/18 Delivery Year Third Incremental Auction
PJM presented changes to its proposal for the release of capacity in the 2017/18 delivery year third incremental auction.
In response to stakeholder feedback, PJM has been revising its proposed solution and changes to tariff language related to how it would release capacity originally acquired as part of the Capacity Performance transition auction. PJM will continue to develop the proposed solution and tariff language and present it to stakeholders at the September MIC for endorsement.
PJM emphasized that the remedy would apply to just one auction.
PJM addressed a core technical issue in a presentation from the Metering Task Force. There will be extensive resulting changes to Manual 1: Control Center and Data Exchange. The changes add new areas of guidance for accuracy, clarification of components in metering system and maintenance, accuracy verification, and investigation.
The committee endorsed the following changes:
- Manual 3A: Energy Management System (EMS) Model Updates and Quality Assurance (QA) (administrative and modeling process updates)
- Manual 11: Energy & Ancillary Services Market Operations (periodic review process)
- Manual 12: Balancing Operations (administrative and conforming updates)
- Manual 14D: Generator Operational Requirements (updates to the unit cold weather testing process and the clarification of VAR-001 exception criteria)
- Manual 37: Reliability Coordination (periodic review)