Stakeholders Tackle Tough Issues at MIC

Members examined a number of complicated topics at the Market Implementation Committee meeting on April 12. Extended discussions revolved around energy efficiency, aggregated resources and the fuel cost policy process.

PJM provided a first read of a problem statement and issue charge that addresses state requirements of energy efficiency resources participating in PJM markets.

Prior to participating in PJM markets, providers of demand response resources must have their registration reviewed by the applicable electric distribution company to ensure the end-use customers’ aggregation of demand response resource is done in accordance with the Relevant Electric Retail Regulatory Authority’s orders or regulations.

There is no comparable process for energy efficiency for PJM market participation. PJM is proposing two reforms: to establish a similar registration and verification process for energy efficiency; and to determine how to handle energy efficiency resources that may already have a commitment to PJM that conflicts with state aggregation policies.

PJM also updated members on resources that requested additional winter capacity interconnection rights for use in the upcoming base residual auction, which will open on May 10. Thirty-one resources were approved for additional CIRs, to use as an additional winter sell offer or to use for aggregation.

In a related presentation, PJM presented conforming revisions to Manual 18: Capacity Market stemming from the Enhanced Aggregation filing at the Federal Energy Regulatory Commission (Docket ER17-367). PJM filed changes to the Tariff in November and the FERC issued its acceptance order in March.

This order allows PJM to apply new rules regarding resource aggregation, demand response measurement and verification, and winter period capacity injection rights to the auction.

Related to the continuing discussion of the fuel cost policy process, PJM presented a first read of a problem statement and issue charge to define what should be included in the variable operations and maintenance costs for fuel cost policies and the submission of cost-based offers.

Market sellers, PJM and the Market Monitor found, during the hourly offers and fuel cost policy discussions, there were differences in interpretation between PJM and the MMU regarding the treatment of maintenance costs. PJM presented the problem statement and issue charge to address discrepancies and clarify definitions and proper treatment of costs.  This should help market sellers as they develop their cost-based offers in the PJM Energy Markets.

Other Committee Business


  • Solution package for the annual revenue requirements for new black start units
  • Stakeholders withdrew a proposed solution up for an endorsement vote for the Spot-in Transmission Service for Energy Imports from NYISO issue. Stakeholders removed the proposal to change the spot-in transmission service request time for energy imports because of concerns about creating other seams issues. Going forward, stakeholders and PJM will work to develop a more comprehensive approach to market issues across all PJM seams. PJM and stakeholders expect to return with a joint problem statement in the future.

First reads