MIC Narrowly Passes EER Problem Statement  


PJM stakeholders on Wednesday at the Markets Implementation Committee narrowly passed a problem statement and issue charge that addresses state requirements on energy efficiency aggregation for PJM capacity market participation.

The stakeholder discussion on the problem statement and issue charge in prior MIC meetings heavily focused on jurisdictional issues. Because stakeholder debate on jurisdiction was not likely to be productive, PJM proposed waiting to file any proposed rule changes that would result from stakeholder discussion until after the Federal Energy Regulatory Commission issued a ruling on a recently filed petition focused on that jurisdiction issue.

Spurred by the prior PJM stakeholder discussion of the problem statement and issue charge, Advanced Energy Economy requested the FERC to issue a declaratory order expressing its authority over energy efficiency in ISO/RTO markets, and determining that a Relevant Electric Retail Regulatory Authority (RERRA) – similar to a state regulatory commission —  may not restrict participation of energy efficiency in wholesale markets unless FERC expressly adopts rules or regulations giving the RERRA’s authority.

On June 6 the Kentucky Public Service Commission issued an order asserting that retail customers have no authority to sell directly or indirectly into PJM, which said the Kentucky utilities need a way to ensure the Kentucky Commission’s determination is respected.

PJM explained that it was important for the MIC to approve the problem statement and issue charge so that the committee may develop an appropriate set of rules and processes to respect RERRA determinations about energy efficiency aggregation to be ready to move forward in the event FERC issues an order determining that the wholesale market must respect RERRA determinations.

Stakeholders approved the problem statement and issue charge by a 51 percent-49 percent vote. Prior to that vote, stakeholders voted on a motion to defer the vote on the problem statement to when FERC issues a declaratory order on the jurisdiction issue or until Jan. 1, 2018 – whichever comes first; that vote failed after a lengthy discussion.

Stakeholders did not approve any of the proposed solution packages to address the demand response open registration window issue. PJM presented three solutions from the Demand Response Subcommittee. Stakeholders voted not to continue considering additional alternatives.  Since all three packages failed, PJM will continue with the status quo; the vote closes out the problem statement.


Working Issues

First Readings  

  • Revisions to Manual 11: Energy & Ancillary Services and Manual 18: PJM Capacity Market for Capacity Performance and performance assessment hours
  • PJM presented a first read of conforming revisions to Manual 11: Energy & Ancillary Services, associated with the implementation of intraday offers, and updated training information
  • PJM will present Tariff and Operating Agreement revisions related to the limitation on claims

Additional Updates