In a meeting marked with lengthy stakeholder discussions, the Markets and Reliability Committee endorsed a pair of proposals that would bring PJM in line with orders from the Federal Energy Regulatory Commission.
The committee endorsed PJM’s proposals related to the FERC’s order on fuel cost policies and on Order 825 – Shortage Pricing.
FERC Order 825
PJM will now make a 205 filing at the FERC to include a permanent second step in the demand curve.
PJM suggested that adding a small step to the demand curve would create better price signals prior to when synchronized reserves are less than the largest contingency. The changes would take effect Feb. 1, 2018.
Fuel Cost Policy
After an extended discussion, stakeholders passed PJM’s proposed revisions to Manual 15: Cost Development Guidelines and the Operating Agreement regarding hourly offers and fuel cost policies.
The independent market monitor introduced language that stated the market monitor’s input to PJM would include the market monitor’s recommendation as to whether PJM should approve a market seller’s fuel cost policy. Stu Bresler, senior vice president – Operations and Markets, said that PJM did not believe that the IMM’s proposed language was consistent with the FERC’s order Attempts at reworking the language into a friendly amendment resulted in minor clarifications to the PJM
proposal; the MRC endorsed the proposed revisions.
Other committee business
PJM presented the first read of the new Manual 14F: Competitive Planning Process. The manual focuses on the process for competitive proposal windows, consistent with the FERC Order 1000. Much of the implementation material exists in other forms in PJM’s Regional Transmission Expansion Plan process; the manual brings it into a single source.
Stakeholders approved the motion to reconsider revised language on a previously rejected problem statement /issue charge regarding procurement of replacement capacity in RPM Incremental Auctions. The committee then approved the revised problem statement and issue charge.
PJM presented updates on pro-forma pseudo-tie agreements, with stakeholder-suggested changes from previous material. A vote on these documents will be conducted at a future meeting.
- Proposed changes to Manual 13: Emergency Operations
- Proposed revisions to Manual 37: Reliability Coordination
- Proposed revisions to Manual 01: Control Center and Data Exchange Requirements
- Approved draft charter for the Modelling Generation Senior Task Force
- Approved draft charter for the Incremental Auction Senior Task Force
- Approved a proposed stakeholder problem statement/issue charge that modify opportunity cost calculators
- PJM presented the proposed Phase 3 solution endorsed by the Energy Market Uplift Senior Task Force, which addresses eligible nodes for virtual transactions. In February, 59.7 percent of the task force voted for this proposed package, the only proposal to receive simple majority.
- A review of the Regulation Market Issues Senior Task Force, which has been working on proposed regulation market enhancements including signal and design analysis and regulation requirements.
- Draft charter for the Capacity Construct / Public Policy Senior Task Force
- First read on administrative updates to Manual 14B: PJM Regional Transmission Planning Process
PJM and stakeholders reviewed the activities for the Transmission Replacement Process Senior Task Force. Most of the task force activities are subject to a hiatus related to Show Cause Order by the FERC and the absence of a quorum at the commission.
PJM also announced that it is performing firewall maintenance on pjm.com on Thursday, March 30, from 7 p.m. to 1 a.m. PJM advised members to download any information they might need to access during the scheduled firewall maintenance.