Stakeholders tackle complex issues at MRC

The stakeholder process did not take a holiday Thursday, as members looked at a number of complex issues at the Markets & Reliability Committee meeting.

Capacity Construct Public Policy Senior Task Force

Stakeholders voted to defer consideration until the Jan. 25 MRC of a proposal from Monitoring Analytics, PJM’s independent market monitor, of an extended Minimum Offer Price Rule (MOPR-Ex). The proposal was developed in the Capacity Construct/Public Policy Senior Task Force. The motion to defer passed by a 4.24 sector-weighted vote.

The MOPR-Ex proposal was endorsed by the task force; an alternate motion offered by the Delaware Division of the Public Advocate is the IMM’s revised MOPR-Ex proposal (with more renewable portfolio standards exemptions). Members will vote on it if the task force proposal does not receive two-thirds sector support at the Jan. 25 MRC meeting. If a proposal is endorsed by the MRC, the Members Committee also will vote on the proposal at its Jan. 25 meeting.

Stu Bresler, senior vice president – Operations and Markets, explained what PJM believes are the shortcomings of the MOPR-Ex proposal – including that it mitigates instead of accommodating state policy objectives and discriminates between different generator fuel sources. PJM management expects to recommend its re-pricing proposal to the PJM Board at its February 2018 meeting.

The IMM’s Joe Bowring noted that Monitoring Analytics may make a Section 206 filing of the revised MOPR-Ex proposal to the Federal Energy Regulatory Commission if stakeholders do not endorse it and/or if PJM does not file it.

Energy Price Formation

Stakeholders approved the Energy Price Formation problem statement and issue charge after stakeholder language changes were incorporated as friendly amendments. There were 12 objections and 14 abstentions to this acclamation vote.

The IMM presented its alternate problem statement and issue charge before PJM’s revised problem statement and issue charge were approved.

The issue charge includes education and looking at the design criteria that should guide the selection of energy market and shortage pricing design alternatives to ensure they are effective in achieving the price formation goal of maximizing the social welfare objective.

Gas Pipeline Contingencies

Stakeholders passed by acclamation revisions to Manual 03: Transmission Operations and Manual 13: Emergency Operations, without gas pipeline contingency language.

Dave Souder, director – Operations Planning, worked with a cross-section of members to develop a compromise on manual revisions around the gas contingencies. In a separate vote, stakeholders endorsed that compromise by acclamation (seven objections, four abstentions).

The potential responsibility for generator costs related to PJM operating to a gas contingency will be addressed through a problem statement and issue charge that PJM will present to the January Markets Implementation Committee and the MRC.

Other Committee Business

Although it did not receive at least 50 percent support in the task force, stakeholders approved, with a 3.55 sector-weighted vote, PJM’s incremental auction Proposal A” from the Incremental Auction Senior Task Force (put forth by stakeholders at the MRC). Among other things, the proposal streamlines the incremental auction process and reduces the number of incremental auctions from three to two.

PJM presented first reads to revisions to PJM Manual 14F: Competitive Planning Process and the Operating Agreement regarding cost containment provisions developed during special Planning Committee sessions. There was a stakeholder presentation of potential broader cost containment provisions that members believe should be considered before the MRC votes on the proposed revisions, but no specific stakeholder proposal was offered.

Jen Tribulski, associate general counsel – Office of General Counsel, provided an informational update regarding the existing MOPR in light of this month’s FERC MOPR Remand Order. Specifically, PJM provided details on the upcoming deadlines for requesting a unit-specific exception from the MOPR floor price, including that PJM sought a waiver of some deadlines that had already expired.

Endorsements 

First reads