VOM at heart of MC Webinar 

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Stakeholders heard updates on variable operation and maintenance costs (VOM) from PJM and the Independent Market Monitor at the Members Committee Webinar March 19.

The IMM identified an issue with VOM costs for many units that do not have a complete maintenance history. It recommends that units with less than 10 years of history use only actual data to calculate the VOM adder.

Manual 15: Cost Development Guidelines  allows market sellers with immature units to use alternatives to actual, historical costs with less than a 10-year history. Manual 15 also states these alternatives need to be converted to current year dollars.  PJM agrees with IMM that it appears some of the market sellers’ VOM calculations may not have appropriately made these conversions.

PJM has encouraged market sellers to use actual data for units with less than 10 years of maintenance history (using the exception process in Manual 15). Market sellers are also encouraged to participate in the ongoing special sessions of the Market Implementation Committee focused on improving VOM calculations (next session March 20).

The IMM also presented its report “Generation Additions and Retirements in the PJM Capacity Market: MW and Funding Sources for Delivery Years 2007/2008 through 2020/2021.”

Ray Fernandez, manager – Market Settlements Development, provided an update on the 5-minute settlements implementation scheduled for April 1. On March 23, PJM will file FERC-requested settlement modifications, including allowing a demand response resource to submit 5-minute meter data if the resource has that data available to it.

Dave Anders, director – Stakeholder Affairs, summarized the discussion from the morning’s Stakeholder Process Forum on more clarity and more efficiency around wording for problem statements and issue charges. A stakeholder group is developing straw document updates to Manual 34: PJM Stakeholder Process around clarity between charter and problem statements for future forums.

Jennifer Freeman, senior economist – Market Analysis, delivered the market operations update. She said uplift was relatively low in February, certainly much lower than in January with its cold snap. She directed stakeholders to the drivers of uplift page on pjm.com.

Alpa Jani, senior consultant – Dispatch, took stakeholders through the process for responding to the invitation for the upcoming System Restoration Drill planned for May 15 and 16. Members with questions about the email or invitations should contact Alpa.Jani@pjm.com; members with questions about the drill itself should contact Joshua.Berckman@pjm.com.

Updates and Stakeholder Group Reports