Straw Proposal To Comply with FERC Order 841 Heads to MIC

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PJM plans to present a straw proposal at the Oct. 10 meeting of the Market Implementation Committee to remove barriers to electric storage resource participation in the markets in response to FERC Order 841.

The updated proposal reflects stakeholder input from a series of eight special sessions held on the issue, which concluded Sept. 14. (See Roundup: Looking at Electric Storage, Energy Price Formation, System Operations.)

Among the modifications due to member feedback:

  • Greater flexibility for representing a unit’s ramp capability.
  • Charge and discharge modes may have minimum charge and discharge megawatt levels – they are not required to be able to reach zero megawatts output.
  • The resource will telemeter its state of charge to PJM for informational purposes only.
  • The Day-ahead Energy Market must-offer is status quo. Capacity storage may self-schedule to meet its must-offer requirement.

PJM also offered its straw proposal for how transmission charges would be applied to energy storage resource charging energy that is purchased from PJM, as required by Order 841.

The FERC order applies to all ISOs and RTOs. PJM’s filing is due Dec. 3, with implementation to conclude by Dec. 3, 2019.

Electric storage is defined as a resource capable of receiving electric energy from the grid and storing it for later injection back into the grid. Demand response is not included.

These resources may be connected at transmission, at distribution or behind a customer’s meter. Currently, there are more than 5,300 megawatts of electric storage resources (ESRs) in PJM’s system, 96 percent of it pumped hydro.

One concern commonly raised in the sessions was the number of hours of sustained output that an ESR must be capable of in order to be a capacity resource.

PJM proposes that the status quo, per Manual 21, of a minimum duration of 10 hours be maintained in the capacity market.

No member votes are associated with the compliance filing, but PJM will consider stakeholder feedback.