The Markets and Reliability Committee and Members Committee covered a number of topics at their October 1 meetings.
Both committees passed the consensus proposal to raise PJM’s energy offer cap. After the MRC overwhelmingly approved the measure by sector-weighted vote of 4.3 in favor, the MC passed it by acclamation.
In a first read, Tom Falin, manager of Resource Adequacy, discussed changes to the load forecasting model.
Falin also presented a proposed increase to the installed reserve margin, a component that factors into setting the amount of reserves to be procured at the next capacity auction.
Although the IRM will increase by 0.8 percent, the more meaningful factor is the Forecast Pool Requirement, derived from the IRM. The FPR is the actual factor that determines the demand curve of the auction. The FPR will increase modestly but represents about the median value for FPRs for the past 28 auctions. It is expected that the effect of the increase in FPR, offset by a decreased load forecast, will mean a net savings to consumers and entities who serve them.
There was an extended discussion of the recent Notice of Proposed Rulemaking by the Federal Energy Regulatory Commission regarding price formation. PJM has set up a mailbox for stakeholders to submit questions and suggestions for consideration as PJM develops its reply NOPR comments. Submit any questions or suggestions to: PriceFormationNOPR@pjm.com
Among the other first reads was a minor change in PJM’s Tariff for the incremental auctions, necessitated by the Capacity Performance transition auctions.
Members Committee meeting
The Consumer Advocates of the PJM States presented a proposal to change the way the group is funded.
Since its formation in 2013, CAPS has been funded through the Constellation merger settlement. The state consumer advocates are seeking a change to the PJM tariff to provide ongoing funding to continue their participation in PJM matters. The funding would pay for staffing and travel for state consumer advocates.
CAPS said the funding request amounts to less than a penny annually for typical residential consumers ($0.00067 per MWH for 1,000 KWH per month). This will generate approximately $450,000 per year, according to CAPS.
MRC manual votes
The MRC also approved four manual changes:
Manual 40: Miscellaneous editing, clarification, and terminology changes
Manual M10: Pre-Scheduling Operations
Manual 14D: Minor changes to the Cold Weather Resource Improvement process survey, regarding scheduling. There are no changes to the successful voluntary program.
Manual 14 series: Align with a final ruling from the FERC regarding Multi-Driver Approach