Stated Rates, Pseudo Ties Highlight MC Webinar

Suzanne Daugherty, chief financial officer and treasurer, talked about the weather at the Members Committee webinar on Monday afternoon.

Specifically, Daugherty addressed the effect of the relatively mild winter of 2015/16 (and 2015’s relatively mild summer) had on PJM’s finances, as well as the ongoing discussions with the Finance Committee on PJM’s future stated rates.

She also reviewed a potential temporary filing PJM may submit to the Federal Energy Regulatory Commission in July, if PJM’s stated rate reserve is projected to be depleted prior to the updated stated rates being filed and effective. PJM would review the potential need for this “safety net” filing at the July Finance Committee meeting.

Daugherty emphasized that, for any increase in stated rates, “we are talking pennies, not dimes or quarters.”

PJM has asked member-elected Finance Committee representatives to provide feedback on draft objectives to help guide future discussions of potential future rate options.

External Capacity Performance Enhancements

PJM gave an initial presentation on external Capacity Performance enhancements.

In order to participate in PJM’s Capacity Performance, external CP resources are subject to pseudo-tie requirements. Pseudo-ties are a special type of transaction used when a generator is selling into a nearby grid outside of where it is located. They are used as virtual tie line flows but no physical tie or energy metering actually exists.

On Thursday, PJM will ask the Markets and Reliability Committee to vote on a problem statement and issue charge in response to operational, markets and planning challenges that PJM faces during the pseudo-tie implementation process.

While PJM and MISO have been working on temporary solutions, PJM is working to reconcile these challenges and implement necessary changes prior to its 2017 base residual auction for the 2020/21 delivery year.  In order to do that, PJM would need to have a recommendation to the MRC in August.

In other business:

PJM presented an update to information on communications, drills and education sessions to reach stakeholders in advance of Capacity Performance obligations and operations on June 1. An online update on Capacity Performance changes targeted for generation owner dispatchers will be available through the Learning Management System in early May.

The Knowledge Management Center presented preliminary results of the 2015 Stakeholder Survey, in advance of the more detailed presentation on May 19 at the Annual Meeting. PJM is asking members and participants to send survey feedback to surveyfeedback@pjm.com.

PJM also presented an update on the Clean Power Plan reference model.