Clean Power Plan Assessment Highlights MC Webinar

PJM’s role in providing studies and assessments on the Clean Power Plan to the Organization of PJM States, Inc. was the centerpiece of the Members Committee webinar on November 16.

PJM is providing analysis and support to OPSI and state air regulators to help toward the development of state plans to comply with the Clean Power Plan. PJM will provide the OPSI with an assessment of the potential economic and reliability impacts of the Clean Power Plan’s approaches, commonly called compliance pathways.

The Environmental Protection Agency released its final Clean Power Plan rule in August. For the PJM region, on a mass-basis, by 2030 the CPP requires a 36 percent decrease in carbon dioxide emissions from 2005 and a 23 percent reduction from 2012, the year for which the emissions baseline was established.

Earlier this year, PJM released its economic and reliability analyses of the proposed Clean Power Plan.

For analysis of the final regulation, OPSI requested that PJM first develop a business-as-usual model that is representative of market conditions reasonably expected to occur in the absence of the CPP regulation.

In response, PJM has proposed to develop a business-as-usual case for 2018, which includes energy-only resources currently under construction. Capacity and demand-side management resources will be represented at the level cleared in the 2018/2019 PJM capacity market auction.

The 2018 business-as-usual scenario is the starting point for modeling the CPP compliance scenarios, and will facilitate PJM’s evaluation of early emissions reduction programs in 2020 and 2021.

For each compliance pathway, PJM will study expected new resources and exits of resources over a 20-year period. PJM will also perform a detailed hourly transmission assessment for 2023, 2026, 2028 and 2030.

PJM’s analysis will provide the capital and production costs associated with specific compliance pathways.

Throughout the compliance planning process, PJM will continue discussions with OPSI, state regulators and stakeholders.

In other MC webinar topics:

Stan Williams, director – Compliance and Settlements, discussed interregional planning updates, including the upcoming MISO/PJM joint stakeholder meeting on November 18 at MISO’s offices in Indiana.

Dr. Joe Bowring presented the Market Monitoring Report.