PJM presented a problem statement and issue charge at the Markets and Reliability Committee on Sept. 29 that would give stakeholders a process to perform education on the calculation of the default market seller offer cap and balancing ratio. It also would allow stakeholders to develop an alternative balancing ratio calculation methodology, if needed, for use in Reliability Pricing Model base residual auctions to be conducted in 2019 and beyond.
The committee reviewed related proposed Tariff revisions to address the default market seller offer cap and balancing ratio for use in the base residual auction to be held in 2018.
The committee will be asked to endorse the proposals at the next MRC and Members Committee meeting.
PJM asked the committee for guidance in developing the next steps for the current special Markets Implementation Committee on Distributed Energy Resource. Stakeholder consensus is that the special sessions of the MIC are no longer the correct forum for the long-term issue, as the scope of the project has grown and now includes planning, markets and operations.
PJM presented a proposed charter to convert the effort to a subcommittee, which would report to the MRC. PJM also stressed the importance of bringing more electric distribution companies into the discussion, which the move to a subcommittee would encourage.
Endorsements and Approvals
In a sector-weighted vote, stakeholders approved revisions to Manual 6: Financial Transmission Rights associated with FTR forfeitures, with 4.36 in favor.
Stakeholders endorsed by acclamation Manual 14B: Regional Transmission Planning Process revisions on capacity emergency transfer limit procedural changes. PJM committed to further education and discussions with stakeholders to address any concerns.
- Primary Frequency Response Senior Task Force draft charter
- Governing Documents Enhancement and Clarification Subcommittee revisions to the Tariff, OA and Reliability Assurance Agreement (definition cleanup)
- Manual 3A: EMS Model Updates and Quality Assurance (periodic review)
- Manual 11: Energy & Ancillary Services (implementation of intraday offers)
- Manual 14A: Generation and Transmission Interconnection Process (periodic review)
- Manual 28: Operating Agreement Accounting (implementation of intraday offers)
PJM and Monitoring Analytics, the independent market monitor for PJM, discussed specific details of changes regarding capping intraday offers to Manual 11: Energy & Ancillary Services and related, proposed revisions to the Operating Agreement. PJM also gave a first read of changes for Manual 11: Energy & Ancillary Services, regarding the offer verification process and offer capping logic for implementation of FERC Order 831: Energy Offer Verification.
An agenda item to revisit a proposal from Monitoring Analytics on minimum fuel tank suction level, which was developed as part of Phase 2 for reviewing the annual revenue requirements for new black start units, was withdrawn. Stakeholders did not approve the proposal at the September Markets Implementation Committee meeting.
Other first reads
- 2017 Installed Reserve Margin study results
- Proposed revisions to Operating Agreement (regarding PJM’s sharing restoration planning generator data with transmission owners)
- Manual 14B: Regional Transmission Planning Process (contingency definitions)
- Manual 19: Load Forecasting and Analysis (load drop estimates and required periodic review)
- Preliminary 2018 project budget
- Incremental Auction Senior Task Force
- Capacity Construct / Public Policy Senior Task Force
Energy Offer Verification Drill on Oct. 5
PJM will host an Energy Offer Verification Exercise on Oct. 5, 2017, from 11 a.m. – 1 p.m. This drill will allow market participants to test the offer verification manual process that will be used from Nov. 1, 2017, until March 31, 2018, to verify cost-based energy offers greater than $1,000/MWh (Pending FERC approval)
PJM will provide more detailed instructions the day prior to the event. Additional information can be accessed on the Energy Offer Verification page. Please direct questions to EnergyOfferVerification@pjm.com.