Stakeholders Support PJM Regulation Changes at MRC


Stakeholders demonstrated their strong support for changes in how PJM balances regulation signals at the Markets Reliability Committee on June 22.

Eric Hsia, manager – Performance Compliance, presented the regulation market enhancements that were endorsed by the Regulation Market Issues Senior Task Force. Stakeholders passed the package in a sector-weighted vote with 3.89 in favor.

Members rejected a stakeholder proposal to defer the vote and that required details of the signal design to be included in the tariff.

The task force proposed changes aimed to correct the value substitution between fast-responding Regulation D (RegD) to traditional resources (RegA), performance measurement and market optimization concerns. The changes originated from a problem statement raised by the Independent Market Monitor in 2015.

The enhancements also include changes to the operating agreement and tariff (as well as changes to Manuals 11, 12, 28), with new definitions and operational relationships between RegA and RegD.

Other Committee Business

By failing to extend the Transmission Replacement Process Senior Task Force hiatus, stakeholders allowed the task force to resume its work.

The MRC approved the creation of the task force in 2016 to look at transmission asset end-of-life issues in the Regional Transmission Expansion Plan. The Federal Energy Regulatory Commission issued a Show Cause Order, which affected much of the task force’s scope surrounding supplemental projects. The MRC then suspended the task force’s activities pending resolution of the Show Cause Order. The committee voted in February to extend the suspension for an additional three months.

“From a legal perspective, PJM does not have jurisdiction over transmission owners’ supplemental projects,” said Chris O’Hara, vice president and deputy general counsel. “PJM supports transparency in general and in particular when it relates to topics that impact the costs charged to members.”

He added that PJM is ready to re-engage the task force charter topics that have been suspended since last fall, if the committee wanted PJM’s involvement. PJM also recognizes, however, that there are numerous topics in the stakeholder process and it may be more productive if it re-engages after the FERC takes action on the Show Cause Order.

After discussion, the MRC deferred a vote on establishing uniform pseudo-tie pro forma agreements until the July meeting. At that time, members will vote on its endorsement at both the MRC and the Members Committee, allowing PJM to fulfill a commitment to the FERC that it would make a joint filing with MISO on pseudo-ties by the end of July.

Jacqui Hugee, PJM associate general counsel, also presented a first reading of a draft dynamic schedule agreement.  The committee will be asked to endorse the agreement at a future meeting.

 PJM discussed the disposition of two items identified in a footnote in PJM’s seasonal capacity resources FERC filing related to evaluation of seasonal resources participation in PJM markets and sunsetting the Seasonal Capacity Resources Senior Task Force. PJM plans to bring a draft problem statement to the July MRC about operational flexibility for summer-only resources outside of RPM.

 Endorsements (all by acclamation)

  • Updates to Manual 14A: Generation and Transmission Interconnection Process and the Tariff related to less than $5M cost allocation and the alternate queue
  • Manual 14C: Generation and Transmission Interconnection Facility Construction (language alignment with work of Designated Entity Design Standards Taskforce)
  • New Manual 14F: Competitive Planning Process, including the decisional diagram
  • Updates to Manual 20: PJM Resource Adequacy Analysis (Zonal and Global Locational Deliverability Areas for CETO calculations)
  • Changes to Manual 28: Operating Agreement Accounting (FTR Balancing Congestion)
  • Changes to Manual 39: Nuclear Plant Interface Coordination

First reads

  • Governing document revisions to the limitation on claims
  • Changes to Manual 14B: Regional Transmission Process and PJM Operating Agreement
  • Updates in conjunction with the redesign of the Transmission Expansion Advisory Committee
  • Revisions to Manual 01: Control Center and Data Exchange Requirements
  • Revisions to Manual 11: Energy & Ancillary Services and Manual 18: PJM Capacity Market (revisions on Capacity Performance and performance assessment hours)