MRC hears Energy Price Formation overview

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PJM summarized the work of the Energy Price Formation Senior Task Force (EPSTF) at the April 19 Markets and Reliability Committee meeting, looking at short-, medium- and long-term goals.

Andy Ott, president and CEO of PJM, sent a letter on April 11 on behalf of the PJM Board regarding the priorities and schedules for the work of the EPSTF. The task force has been working on two categories of price formation initiatives – price formation issues related to standard locational marginal prices and price formation as the system approaches reserve shortages, scarcity and reserve market pricing.

Subsequently, at the April 18 EPSTF meeting, PJM proposed that short-term (i.e., third quarter of 2018) targets include consolidation of the Tier 1 and Tier 2 products in the synchronized reserve market and initial steps for simplifying the operating reserve demand curve. Mid-term goals (i.e., first quarter of 2019) include developing a real-time 30-minute reserve market. Long-term goals include broader implementation of extended locational marginal prices. The implementation of any fast-start initiatives will depend on action from the Federal Energy Regulatory Commission.

Other Committee Business

Dave Souder, senior director – Operations Planning, gave a first read of the reworking of a provision of the Operating Agreement about sharing confidential member information with reliability entities. The provision stipulates that PJM may share members’ confidential information with reliability entities, such as Eastern Interconnect Data Sharing Network, Inc., in addition to the North American Electric Reliability Council. NERC is in the process of transitioning industry reliability-based tools to EIDSN Inc.

Melissa Pilong, senior analyst – Market Services, presented the first read of the Variable Operations & Maintenance Costs solution packages that were endorsed at the April 4 Market Implementation Committee meeting.

Dave Anders, director – Stakeholder Affairs, told members that PJM’s conference call provider reported that one of the conference call lines used for stakeholder meetings had been compromised and the provider will be setting up a new account.

As a result, members will receive updated invitations for stakeholder meetings for which they have registered. In the future, after registration closes, conference call numbers will be visible only when users are signed into PJM.com with their login credentials.

Endorsements  

Stakeholders deferred voting to allow continued discussion on language for Manual 11: Energy & Ancillary Services Market Operations, which corrects certain provisions regarding priced-based offers.

First Reads

  • Manual 36: System Restoration
  • Manual 03: Transmission Operations
  • Manual 11: Energy & Ancillary Services Market Operations (FERC Order on virtual bidding)
  • Manual 14A: New Services Request Process (Attachments F and G) to align with the current data submission process in Queue Point
  • Manual 07: Protection Standards (Relay Subcommittee’s periodic cover-to-cover review)

Informational Updates