MRC approves energy price formation issue charge

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Stakeholders approved a revised issue charge for energy price formation at the Markets & Reliability Committee meeting March 22.

The issue charge revisions reflected changes for reliability-related aspects of a real-time secondary reserve product.

The Operating Committee (OC) will work on developing a real-time secondary reserve product that addresses the real-time requirements, taking into account the impact of operational variability.

Dave Souder, senior director – Operations Planning and chair of the Operating Committee, said the Operating Committee will work collaboratively with the Energy Price Formation Senior Task Force. Once the OC develops the reliability related aspects of the secondary reserve products, it will work with the
task force.

Stakeholders also approved the task force’s charter with no objections and no abstentions.

Tim Horger, director – Energy Market Operations, gave an update on tariff revisions to address overlapping congestion, which passed with no objections and two abstentions. PJM is still waiting for a ruling from the Federal Energy Regulatory Commission on the first phase of changes (revisions to the joint operating agreement with MISO have been filed with the FERC).

The second set of changes applies to PJM’s Tariff and Operating Agreement. Those changes include updated definitions for balancing congestion charges, Day-Ahead Energy Market injection congestion credit and Day-Ahead Energy Market withdrawal congestion charges.

Horger reminded stakeholders there is a detailed spreadsheet where they can measure impacts for any congestion solution.

Endorsements

Several manual revisions all passed by acclamation with no objections and no abstentions

  • Manual 01: Control Center and Data Exchange Requirements
  • Manual 3A: Energy Management System (EMS) Model Updates and Quality Assurance (QA)
  • Manual 14A: New Services Request Process and Manual 14E: Additional Information for Upgrade and Transmission Interconnection Projects
  • Manual 33: Administrative Services for PJM Interconnection Agreement
  • Manual 37: Reliability Coordination

First Readings

Informational Updates

MEMBERS COMMITTEE MEETING 

As part of the consent agenda, members endorsed the Jan. 25 meeting minutes and the Tariff and Operating Agreement revisions to address overlapping congestion for pseudo-tied resources (with one abstention on the overlapping congestion proposal).

Vice Chair Chuck Dugan provided an update on the Members Committee Annual Plan and reports on the Feb. 13 and April 11, 2018, Liaison Committee meetings and May 15 General Session.

STATE OF THE MARKET REPORT 

After the Members Committee meeting, Dr. Joe Bowring of Monitoring Analytics, PJM’s independent market monitor, presented the IMM’s State of the Market Report. The IMM found that PJM’s markets were competitive in 2017. Bowring discussed competitive readiness and provided suggestions for demand response and transactions.