Seasonal Resources, Capacity Performance Lead MRC Topics

group4What is next for PJM and its stakeholders for seasonal resources highlighted a heavy agenda at the Markets and Reliability Committee meeting Oct. 27.

Over the past six months, stakeholders and PJM sought to better enable seasonal resources to offer into the capacity market under Capacity Performance rules. No proposal received majority support in the Seasonal Capacity Resources Senior Task Force.

In the absence of a task force recommendation, the PJM Board directed that PJM should soon file its recommendation with the Federal Energy Regulatory Commission.

Stu Bresler, senior vice president − Operations and Markets, pointed out that PJM’s proposal builds on existing aggregation provisions and works with PJM’s ability to facilitate aggregation through the auction. He also noted that it will be a Section 205 filing with the FERC.

The task force will be suspended, as some stakeholders believe the task force is a good venue for future dialogue on seasonal resources and long-term ideas.

There was additional discussion on a stakeholder proposal to extend base capacity for the 2020/2021 delivery year. PJM and stakeholders would then use that time to explore potential options for recognizing seasonal resources. The MRC will be asked to endorse this proposal at its next meeting.

There was also a proposed stakeholder problem statement and issue charge on winter season resource adequacy and capacity requirements. The committee will be asked to endorse this proposal at its next meeting.

 Among the first reads, several proposals sparked extended stakeholder discussion. These included:

A proposal regarding underperformance risk management in Capacity Performance; stakeholder proposed revisions to Manual 18: Capacity Market, regarding replacement of capacity obligations, and a proposed problem statement and issue charge regarding PJM’s sell-back of excess capacity in Reliability Pricing Model incremental auctions.

In addition, the committee opted for further discussion on an updated stakeholder problem statement and issue charge revisiting the public policy and environmental mandate impacts on the Reliability Pricing Model. Both the problem statement and issue charge have changed considerably since they were first proposed several months ago. Possible options include informational meetings to discuss the exact scope of the problem statement.

Endorsements:joe-article

  • Manual 14A: Generation and Transmission Interconnection Process: Revisions from the Earlier Queue Submittal Task Force
  • Manual 14C: Generation and Transmission Interconnection Facility Construction: Technical standards for Order 1000 projects
  • 2016 Installed Reserve Margin Study results
  • Clarifications to Tariff Attachment Q – Credit Policy
  • Updates to the Market Implementation Committee Charter

 Other first reads included proposals on:

MEMBERS COMMITTEE MEETING

At the Oct. 27 Members Committee meeting, as part of the consent agenda, the committee:

  • Endorsed tariff revisions regarding the release of capacity in the 2017/18 Delivery Year Third Incremental Auction
  • Endorsed Operating Agreement and tariff revisions developed by the Metering Task Force

In addition, Vice Chair Susan Bruce provided an update on the Members Committee annual plan and reviewed the Oct. 18 Liaison Committee meeting with the PJM Board. She announced that the evolution of system planning will be the topic for the December General Session.