PJM’s Markets and Reliability Committee on Thursday, May 28, approved a problem/opportunity statement and issue charge to address a Federal Energy Regulatory Commission proposal requirement regarding coordination challenges between the gas and electric market day timing.
In April, the FERC adopted two proposals to revise the interstate natural gas nomination timeline and make conforming changes to their standards.
The FERC’s final rule changes the timely nomination deadline from 12:30 a.m. to 2 p.m. It also adjusts the second intraday nomination time from 6 p.m. to 3:30 p.m. and adds a third intraday nomination deadline of 8 p.m. The final rule does not change the deadline for the evening nomination cycle, currently 7 p.m., or the first intraday nomination deadline, currently 11 a.m. (All times are provided in EPT.)
FERC requires all RTO/ISO to file tariff changes by July 23 to adjust the timing of their day-ahead energy market and reliability unit commitment process such that they are sufficiently advance of the timely and evening nomination cycles, or show why no tariff changes are necessary.
PJM’s Day-Ahead Market results are published at 4 p.m. and therefore do not provide sufficient notice prior to the deadline for the timely nomination cycle. PJM’s reliability assurance commitment results are currently communicated between 6:30 and 8 p.m., which does not consistently allow for sufficient notice prior to the deadline for the evening nomination cycle.
The MRC will continue to discuss the proposal and invite stakeholder feedback. There is a special session scheduled for June 10.
The MRC did not approve a proposal for an interim solution for uplift costs of virtual products (increment/decrement and up-to-congestion).
In August 2014, the FERC initiated a Federal Power Act Section 206 proceeding to examine the equitability of treatment of virtual increment/decrement vs. up-to-congestion transactions, regarding uplift charges and the FTR forfeiture rule. The comment period closed today, May 29, and the FERC expects to issue an order in October.
PJM and the Market Monitor are developing an analysis of the costs and benefits of virtual product; PJM expects to issue that analysis in the summer.