Stakeholders endorsed the PJM Long-term Financial Transmission Rights (FTR) auction proposal at the Market Implementation Committee meeting June 6.
The proposal enhances the modeling of available transmission system capability in the long-term FTR market by more accurately reflecting the capability of Auction Revenue Rights. It also removes the three-year FTR biddable period.
The PJM package garnered 93 percent support and will go to the June 21 Markets & Reliability Committee meeting for endorsement. If it passes, it will be effective September 1, in time for Round 2 of the 2019/2022 Long-Term Auction. The alternate package from Monitoring Analytics, PJM’s independent market monitor, failed with 21 percent support.
- Revisions to Reliability Assurance Agreement and Manual 18: PJM Capacity Market developed at the Demand Response Subcommittee to address the winter peak load calculation issue
- Financial Transmission Rights nodal remapping proposal
Other committee business
PJM presented a first read on the FTR credit proposal, which has been worked on in the Credit Subcommittee since January.
In a related matter, on June 4, DC Energy filed a complaint against PJM under section 206 of the Federal Power Act asking the Federal Energy Regulatory Commission (FERC) to rule that PJM’s FTR credit requirements are unjust and unreasonable (EL18-170-000) and to order PJM to implement three changes to its FTR credit policy.
In the complaint, one of the revisions DC Energy requested FERC to immediately establish is a 5-cent minimum credit requirement per megawatt-hour of FTR cleared. CFO Suzanne Daugherty told stakeholders that PJM agrees with the concept of implementing such a minimum credit requirement for both bid and cleared FTRs, though at a higher level than D.C. Energy’s complaint suggests.
Also at the June 6 meeting:
- Adam Keech, executive director – Market Operations, provided a brief update on the Performance Assessment Interval event that occurred on Tuesday, May 29.
- Ray Fernandez, manager – Markets Settlements Development, provided an update on the FERC transmission cost allocation settlement, (EL05-121) associated billing adjustments and how the settlement adjustments will be made.
- PJM reviewed the Quadrennial Review work plan and first draft of the design components in the solution to be further discussed.
- Stakeholders continued to work on the Must-Offer Exception Process draft proposal.
- First read was presented for revisions to Manual 18: Capacity Market, the Open Access Transmission Tariff and the Reliability Assurance Agreement regarding the registration process for aggregated seasonal demand response.
- An informational update on price-based offers greater than $1,000/MWh was deferred to the June MIC.
Fuel Cost Policy Review
Because of the packed MIC agenda, several informational items were deferred to the committee’s July meeting. One of those was a discussion on the annual fuel cost policy review process.
PJM notified market sellers in an email that the process will begin on June 15. By that time, all market sellers are required to submit to PJM and the IMM an updated fuel cost policy that complies with Manual 15 and Schedule 2 of the Operating Agreement, or confirm that the currently effective and approved Fuel Cost Policy remains compliant. For more information, refer to the Fuel Cost Policy page on pjm.com. Stakeholders should direct questions to FuelCostPolicyAnalysis@pjm.com.