Planning Committee presents proposals for market efficiency


A goal of PJM’s market efficiency evaluation process is to plan facilities to achieve economic efficiencies and associated metrics. It is designed to determine which reliability upgrades, if any, have an economic benefit if accelerated and to identify new transmission upgrades that may result in economic benefits.

Since the Federal Energy Regulatory Commission enacted Order 1000 in 2011, PJM has conducted multiple market efficiency cycles. As it worked through the process, PJM has identified a number of opportunities to enhance the procedure.

At the Planning Committee meeting on Nov. 9, Asanga Perera, manager – Market Simulation, presented a problem statement designed to allow PJM and stakeholders to explore the process, including the best timing for updates in modeling. In the subsequent discussion, Paul McGlynn, senior director – System Planning, identified one of the challenges with the modeling as when and how often PJM should update the models.

McGlynn said that PJM recognized that there are many changes to the system throughout the course of a year – such as generator deactivations, new resources coming online and other changes to the transmission system. He suggested that discussion through the problem statement and issue charge – including how and when PJM updates the models, what types of changes PJM should make and when in the process – will be beneficial.

Steve Herling, vice president – Planning, added that updating the timing of when assumptions are moved into the model is important for the Regional Transmission Expansion Plan and is a good discussion to have.

Mark Sims, manager – Transmission Planning, presented PJM’s ongoing plans for grid resilience in Transmission Planning. On Thursday, he concentrated on the PJM criteria for resilience and North American Electric Reliability Corporation standards.

Resilience in PJM is an over-arching initiative, with both RTO-wide and departmental proposals. Sims said that PJM sees a number of opportunities to incorporate resilience as a factor in RTEP decision-making. He also noted that developing resilience criteria will require PJM to enhance its analytical procedures and tools.

Sims also continued the review of the assumptions used in the light load reliability criteria procedures.  He will be back to propose updated light load test procedures and parameters.

PJM reviewed peak loads and weather from the summer of 2017. The peak load was below the previous year and the forecast. In addition, the peak day heat index was the second mildest of this decade, with 18 zones having a maximum heat index lower than average.

The committee endorsed the addition of minimum design requirements for underground transmission into all proposals that will require the signing of a Designated Entity Agreement. The minimum requirements came from the Designated Entity Design Standards Task Force; PJM staff will present a charter shortly to move the task force to a subcommittee.  PJM also proposed changes to the procedures for transmission service requests and upgrade requests in the new services queue process.

Other Committee Business