Subcommittees, Task Forces look at DER, Market Efficiency Projects

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Distributed Energy Resources Subcommittee

At the May 21 meeting of the Distributed Energy Resources (DER) subcommittee, stakeholders discussed a proposal for PJM to gain greater visibility of non-wholesale (behind-the-meter) generation and storage.

The proposal would apply to all behind-the-meter resources greater than 1 megawatt as a first step. PJM would collect the majority of information using Form 860 from the Energy Information Administration.

Behind-the-meter generation is generation that does not participate in the wholesale market as a generation resource.

PJM would work with the transmission owners to collect additional information related to mapping each generator to the nearest transmission equipment. PJM would then model these resources and use them in a tool called Post-Contingency Local Load Relief Warning. This tool provides PJM and its transmission owners greater visibility into how these resources might positively or negatively affect the system during an emergency.

PJM will review the proposal at the June 5 Operating Committee meeting, with review of changes to the manual and/or Tariff at the next DER subcommittee on June 8.

Stakeholders also discussed FERC Order 841, Section H (the provision for “Wholesale Stored Energy”) and provided PJM with valuable feedback for Tariff language changes.

This section is relatively straightforward for large, front-of meter energy storage resources.  For DER storage connected to the distribution system or with the ability to directly serve retail load, however, this provision is more complicated.

PJM, load-serving entities, electric distribution companies and DER customers need to establish a metering and accounting practice to determine wholesale stored energy versus retail stored energy and reconcile bills accordingly.

Currently, there is no well-established best practice. Scott Baker, senior business solution analyst and subcommittee chair, acknowledged that this will take a good deal of coordination with all parties involved.

Baker said this is relevant since more and more energy storage is being deployed or planned. This means multiple uses for the battery – some wholesale and some retail — and customer-related services.

Market Efficiency Task Force

At its May 29 meeting, the Market Efficiency Task Force reviewed the results of its non-binding poll to solicit feedback on potential support for key design components. Respondents answered 16 questions in four categories.

PJM will use the results as a starting point for further discussion at its June 15 meeting to develop a proposal for the July Planning Committee meeting.

The four categories of questions concerned:

  • Benefits-to-cost calculation
  • Modeling of facilities study agreement units
  • Regional targeted market efficiency projects (TMEPs)
  • Project reevaluation criteria

Questions covered:

  • Preferences for modeling FSA units
  • How best to calculate benefits for regional TMEPs
  • The preferred method for calculating costs used to compare benefit-to-cost ratio for regional TMEPs

This process also encourages a full PJM legal review on Order No. 1000 in regard to TMEP inconsistencies on an accelerated schedule. It also helps PJM determine what variables should go into commercial probability for FSA modeling and if $50 million is the right threshold for reevaluating projects.

Energy Price Formation Senior Task Force

The Energy Price Formation Task Force focused its May 23 meeting on the simplified operating reserve demand curve and synchronized reserves.

Cheryl Mae Velasco, senior engineer – Real-Time Market Operations, presented proposed changes to synchronized reserves.

Catherine Tyler of Monitoring Analytics, PJM’s independent market monitor, talked about reserve subzones and the synchronized reserve margin.

The next meeting is scheduled for 9 a.m. to 3 p.m. on June 8.

Dispatcher Training Subcommittee

 The updated PJM Transmission Owner Operator certification exam is set to roll out on July 1. It was announced at the May 22 meeting of the Dispatcher Training Subcommittee.

PJM is encouraging as many people as possible to take the test in its first two months. During that time, however, the tests will not be instantly scored, and takers will not know if they passed until a cut score is determined after Sept. 1.

The certification date for those who pass the test will be the day they took the exam.