Robust engagement was the order of the day as PJM, its stakeholders and the market monitor tackled the complexities of developing new fuel cost policies during a special Market Implementation Committee meeting July 27. It was the second special session on the topic.
PJM and Market Analytics, the PJM independent market monitor, presented ideas on reworking fuel cost policy guidelines and an approval process. Stakeholders examined the proposals, asked questions and gave feedback.
Among the topics discussed were the processes and requirements by which PJM and the Market Monitor review fuel cost policies, updating processes for market sellers whose circumstances change after they submit their policy for the year, deadlines and a penalty structure.
The Federal Energy Regulatory Commission ordered PJM to include provisions in the tariff and Operating Agreement for market sellers to have a PJM-approved fuel cost policy in place prior to the submission of cost-based offers.
PJM must make a filing that complies with the clarifying order by Aug. 16 and wants to have approved fuel cost policies in place for winter 2016/2017.
In addition to the changes to the tariff and Schedule 2 of the Operating Agreement, PJM’s changes will be reflected in Manual 15: Cost Development Guidelines.
These include updates to the biennial review administrative updates and the process. The new manual language will also include recent suggestions by the FERC on hourly offers.
PJM will continue to consider stakeholder and Market Monitor feedback on the changes to the tariff, Schedule 2 of the Operating Agreement and Manual 15 and incorporate new language as it develops its proposal for further discussion at an Aug. 4 special MIC meeting.