Members Consider CIR Study, Defer Supplemental Project Changes

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PJM stakeholders would examine the efficacy of capacity interconnection rights and determine if new options should be developed under a proposal presented Thursday to the Markets & Reliability Committee by the PJM Public Power Coalition.  

Capacity interconnection rights, or CIRs, allow generation capacity resources to input power into the transmission system at the point their facility is interconnected.

It has become apparent that members have different understandings and expectations of CIRs, according to the problem statement.

“Some view CIRs as a property right, and any further restrictions on CIRs as a taking of that right; others view them as a contingent assignment of a right that must be relinquished if the owner does not fulfill its obligation as a capacity resource,” the statement reads.

The problem statement notes that, “concerns have been raised that CIRs held by units exempted from the must-offer requirement, as well as retiring units,” may be blocking the entry of new resources into the system. The work, expected to take six to nine months, would include determining whether CIRs:

  • Are the proper mechanism for conveying the associated rights and responsibilities
  • Should be returned to system capability if unused in the capacity market by a resource
  • Obligate a resource to participate in the capacity market

Members are expected to vote on the proposed issue charge at the July 25 meeting of the Markets & Reliability Committee.

Also on Thursday, the committee deferred until July a vote on changes to Manual 14B: Regional Transmission Planning Process. The new language is related to when supplemental projects – transmission expansions or improvements – should be added to, or removed from, PJM’s Regional Transmission Expansion Plan.

LS Power, which is sponsoring the item with the D.C. Office of the People’s Counsel, agreed with PJM that more time is needed to come to agreement on certain issues.

In other business:

  • Members unanimously endorsed the charter for the Fuel Security Senior Task Force with a small edit at the behest of a member, who requested that in addition to market or operational changes, the task force consider potential enhancements to planning in its quest to ensure energy security.
  • Stu Bresler, senior vice president – Operations and Markets, introduced PJM’s updated value proposition. The first analysis since 2015 shows PJM’s operations save customers $3.2 billion to $4 billion annually. A new category looks at emissions savings: Since 2005, in the wake of the shale-gas boom, carbon dioxide emissions have shrunk by more than 10 million tons.
  • Members thanked outgoing President and CEO Andy Ott for more than two decades of service at PJM. In appreciation, they gifted Ott, an avid hiker, with an engraved compass.

At the Members Committee, also held Thursday, members endorsed a new must-offer exception process in a 4.0 sector-weighted vote. The process governs how capacity market participants request and receive an exception from the requirement to offer all available megawatts into each capacity auction of a delivery year.