PJM, Stakeholders Continue Discussion on Fuel Security Study

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PJM addressed stakeholder questions and reviewed high-level conclusions and next steps associated with its recent fuel security study at a special WebEx session of the Markets & Reliability Committee (MRC) on Monday.

The meeting came as PJM is preparing to release a report on the study’s results on Dec. 17 and begin a stakeholder process in the new year that will include developing a related problem statement and issue charge. (See PJM presents fuel security study)

As part of that process, considered Phase 2 of the initiative to analyze resilience of generators’ fuel supply in the PJM region, stakeholders will assess market design and target a solution to be filed with the Federal Energy Regulatory Commission in early 2020.

Suzanne Daugherty, senior vice president, chief financial officer and treasurer, underscored that there is no imminent reliability threat to the system identified in any of the more than 300 scenarios studied. Now PJM is driving the conversation about what safeguards might be appropriate to have in place so that the system is prepared for potential fuel deliverability risks or vulnerabilities, should they ever materialize.

The problem statement will look at the impact of fuel security input assumptions on the level of load shed and see what, if anything, needs to be addressed, she said, and how. That might take the form of new rules in the capacity or energy markets, or even ancillary services.

Several members asked when PJM will include probabilities of the scenarios actually happening. Daugherty said that PJM is not committing to determining the probabilities for the more than 300 scenarios analyzed in the study.

Members also asked about the possibility of studying additional scenarios. As part of Phase 2, PJM will be open to studying new scenarios, Daugherty said, but will gather everyone’s input first in order to group them efficiently.

Some stakeholders also had questioned why the study was focused on gas, nuclear and coal. Dave Souder, senior director – Operations Planning, said that Phase 1 of the study looked at a 14-day weather scenario and other types of fuel typically have on-site fuel of at least 30 days or more. This scope likely will be broadened in Phase 3, he said, which includes coordination with federal agencies on broader national security threats.

Another special session of the Markets & Reliability Committee will be held following the Dec. 20 regular meeting of the MRC in order to answer questions about PJM’s Fuel Security paper, scheduled to be released on Dec. 17.

Answers to other frequently asked questions can be found here.