PJM and stakeholders reviewed 2018/19 Market Efficiency Window guidelines and the Market Efficiency Window process at a special session of the Transmission Expansion Advisory Committee on Oct. 24.
Nicolae Dumitriu, senior lead engineer – Market Simulation, presented the Market Efficiency update, which included eligibility and criteria for congestion drivers, as well as new Operating Agreement language expected to be approved by FERC by December 2018.
In determining eligible congestion drivers, PJM will consider:
- All binding flowgates internal to the PJM footprint (including tie lines)
- Current active market-to-market flowgates listed in the North American Electric Reliability Corporation’s book of flowgates
- Potential future market-to-market flowgates between PJM and MISO
The selection criteria include the annual congestion cost and number of hours binding for simulated years 2023 and 2026.
As part of the 2018/19 cycle, PJM and MISO are also conducting a two-year Interregional Market Efficiency process in parallel to the PJM and MISO regional processes. Per the PJM-MISO Joint Operating Agreement, interregional proposals must be submitted to both PJM and MISO regional windows.
Dumitriu said that PJM is interested in getting the best, most cost-effective projects and is not interested in adding new congestion drivers in the middle of the long-term window. “We have the flexibility to open additional windows if needed,” he said.
He also discussed the Market Efficiency Assumptions white paper. The recently announced First Energy retirements are not included in the assumptions because the needed network upgrades are not yet finalized, he said.
The problem statement, target congestion drivers and modeling data will be posted when the window opens on Nov. 1 and will include Market Efficiency base case files for all study years, PROMOD input files and benchmark test cases and results. To access the information, stakeholders will require CEII confirmation (for both PJM and MISO) and PROMOD vendor (ABB) confirmation.
Dumitriu said that, depending on the posted congestion drivers, additional modeling data may be shared as necessary.
PJM will post the Market Efficiency Regional Expansion Transmission Plan data on the Market Efficiency webpage.
Market Efficiency Process Efficiency Task Force
At the Oct. 26 task force meeting, PJM and stakeholders reviewed the regional target market project concept along with the proposal for the new 18-month overlapping cycle.
Niloufar Mirhosseini, senior engineer – Market Simulation, reviewed the various aspects of the regional target market project concept presented at previous task force meetings along with a comparison of window/no window options.
Dumitriu described what PJM sees as the advantages of the new 18-month overlapping cycle.
A shorter analysis cycle, for example, would mean that transmission enhancements could be in-service sooner. In addition, the shorter window would provide better synchronization between the Market Efficiency cycle timeline with the annual reliability window and capacity market.
In addition, PJM and stakeholders also worked on the component matrix for the task force’s Phase 2.