Stakeholders tackled challenging topics such as virtual transactions and various aspects of the capacity construct at a sometimes contentious Markets and Reliability Committee meeting on April 27.
Tom O’Brien, senior vice present and PJM chief information officer, also cautioned members about a phishing attempt, using phony emails claiming to be from the PJM board.
Stakeholders overwhelmingly approved the Phase 3 proposal from the Energy Market Uplift Senior Task Force. The Phase 3 solution deals with eligible nodes for virtual transactions. Phase 1 concerned reducing uplift and volatility: Phase 2, uplift cost allocation – both were previously endorsed by the Members Committee.
PJM said the solution is intended to strike a balance between retaining the theoretical benefits of virtual trading while eliminating opportunities for virtual transactions to profit from the market without providing those benefits. PJM reviewed the topic in the paper, “Virtual Transactions in the PJM Energy Market.”
There was a motion to defer the vote on Phase 3 until the Federal Energy Regulatory Commission acts on Phase 2. That was not approved; additionally the committee did not formally address whether PJM should file the Phase 3 proposal as two separate pieces. Stakeholders remarked that doing so would be contrary to the principles of the Consensus-Based Issue Resolution Process underlying the PJM stakeholder process.
The draft charter for the Capacity Construct/Public Policy Senior Task Force passed by acclamation. The task force will work to identify where public policy initiatives (such as fuel diversity and environmental policies) may not align with the capacity construct.
The committee endorsed Manual 18: PJM Capacity Market revisions, which conform to the recent FERC order related to seasonal capacity participation in the PJM Capacity Market. Stakeholders passed the revisions with a friendly amendment, three abstentions and no objections. In conjunction with the manual revisions, PJM provided a final report of the Seasonal Capacity Resources Senior Task Force; the committee delayed a vote on sunsetting the committee until the May MRC meeting.
The committee also endorsed revisions to Manual 14B: PJM Region Transmission Planning Process
- Solution package for the Annual Revenue Requirements for new black start units
- Pseudo-tied generators and dynamic schedules meter correction proposal and governing document revisions (endorsed by the Markets Settlements Subcommittee)
- Primary Frequency Response problem statement and issue charge. PJM presented the problem and issue charge at the April Operating Committee.
- Problem statement and issue charge to address enhancements to long-term FTR modeling related to potential congestion impacts for future transmission system changes
PJM Manual First Reads
- Manual 03: Transmission Operations (periodic review)
- Manual 06: Financial transmission rights revisions related to the FERC order impacting the auction revenue rights/financial transmission rights process
- Manual 14D: Generator Operational Requirements related to requirements for solar forecasting (grid-connected solar, not behind-the-meter resources)
- Manual 36: System Restoration (periodic review)