Updates on FERC, Order 1000 at MRC

2002

Now that the Federal Energy Regulatory Commission has a quorum again, it has begun issuing orders and rules. PJM reviewed some of that plethora of new material with stakeholders at the Feb. 22 Markets & Reliability Committee.

PJM and the transmission owners are looking at FERC’s decision on the Show Cause, in which the commission found that the PJM transmission owners are implementing the PJM Operating Agreement in a manner that is inconsistent with the requirements of Order No. 890. The order relates primarily to supplemental projects. The compliance filing must be made to the commission within 30 days.

Steve Herling, vice president – Planning, said that PJM will provide input to the transmission owners to work within the limited amount of time for the compliance filing. There are elements that need to be thought through regarding the Transmission Expansion Advisory Committee process and the schedule for a normal planning cycle. Herling added that efforts are underway through the Planning Committee toward making improvements in transparency in the broader planning process.

The FERC accepted on Feb. 20 PJM’s filing to reduce the number of eligible bidding nodes at which virtual transactions may be submitted by market participants. The order reforms the bidding points eligible for virtual transactions so that the day-ahead market commits resources commitment in a way that closely mimics the set of resources required to physically operate the system in real time.

On Feb. 21, the FERC issued an order accepting PJM’s Order No. 825 compliance filing on 5-minute settlements and shortage pricing. The shortage pricing change is effective as of May 11, 2017, (the date PJM implemented the rules) and the 5-Minute Settlements change is effective April 1, 2018, as PJM had requested in December. FERC is requiring further compliance in only a few areas, such as assuring that demand response is calculated at 5-minute intervals.

The FERC issued its final rule on energy storage on Feb 15. PJM has a year from the date when the rule is published in the Federal Register to make its compliance filing. PJM plans to work the issue through the stakeholder process, possibly through special sessions of the Market Implementation Committee. The FERC also initiated a rulemaking proceeding for distributed energy resources. The FERC will convene a technical conference on April 10–11 to further address the issue and discuss other technical considerations for the bulk power system related to DER.

FERC Order 842 on primary frequency response requires any new units interconnecting to the grid to provide primary frequency response. The order does not address any primary frequency response for existing generation. The focus of the Primary Frequency Response Senior Task Force likely will be on what primary frequency response requirements should be on the existing fleet and what, if any, compensation should be provided to these units.

The FERC previously approved the integration of the Ohio Valley Electric Corporation into PJM, and the OVEC Board of Directors has approved implementation of the integration for June 1.

Other Committee Business

Janell Fabiano, PJM senior stakeholder process specialist, gave an update on the Special Planning Committee meetings regarding competitive planning process cost containment.

The special sessions include education and examination of procurement-based competitive transmission processes. PJM and stakeholders will look at the very different evaluation timelines in each model, when board approvals occur and the amount of time proposing entities have to prepare their packages.

The group will use the Consensus-Based Issue Resolution process to develop and review potential solutions.

Upcoming meetings of the Special Planning Committee are March 6, March 16, April 3 and April 27.

There was an update on previously endorsed administrative revisions to the Operating Agreement related to Order 1000, largely associated with pre-qualification, updates and timing updates.

PJM also presented updates from the Incremental Auction Senior Task Force, which will return to work in the spring.

Endorsements/Approvals

  • Manual 2: Transmission Service Request. These changes correspond to Tariff revisions the MRC endorsed at its Dec. 21, 2017, meeting.
  • Manual 11: Energy & Ancillary Services Market Operations to clarify the Energy Offer Verification process.
  • Manual 18: PJM Capacity Market
  • Draft charter for the Summer-Only Demand Response Senior Task Force
  • Sunsetting two senior task forces

Members remanded Manual 14D: Generator Operational Requirements to the Operating Committee for further discussion. They also deferred voting on Tariff and Operating Agreement revisions to address overlapping congestion until the March MRC.

First Readings

  • Draft charter for the Energy Price Formation Senior Task Force
  • Manual 01: Control Center and Data Exchange Requirements
  • Manual 3A: Energy Management System Model Updates and Quality Assurance
  • Manual 14A: New Services Request Process and Manual 14E: Additional Information for Upgrade and Transmission Interconnection Projects
  • Manual 33: Administrative Services for PJM Interconnection Agreement
  • Manual 37: Reliability Coordination
  • Special protection systems and remedial action schemes in the ComEd zone