Below is a summary of the issues scheduled to be brought to a vote at the PJM Markets and Reliability and Members committee meetings on Thursday. Each item is listed by agenda number, description and projected time of discussion, followed by a summary of the issue and links to prior coverage in RTO Insider.
RTO Insider will be covering the discussions and votes. See next Tuesday’s newsletter for a full report.
Markets and Reliability Committee
Consent Agenda (9:45-9:50)
Members will be asked to approve the following manual changes:
B. Manual 12: Balancing Operations. Periodic review.
C. Manual 13: Emergency Operations. Periodic review.
D. Manual 14A: New Services Request Process, Manual 14E: Upgrade and Transmission Interconnection Requests and Manual 14G: Generation Interconnection Requests. Incorporating changes related to FERC Order 845 on generator interconnection procedures and agreements.
E. Manual 22: Generator Resource Performance Indices. Periodic review.
F. Manual 33: Administrative Services for the PJM Interconnection Operating Agreement. New sections added for member roles and responsibilities and contact management and company account manager (CAM) roles and responsibilities. Existing sections relocated.
G. Manual 37: Reliability Coordination. Periodic review.
Endorsements/Approvals (9:50-10:35)
1. Opportunity Cost Calculator (9:50-10:05)
PJM will seek approval of a compromise proposal to eliminate the RTO’s opportunity cost calculator and make the Independent Market Monitor’s calculator the required tool for market sellers, effective June 1. The switch includes changes to Manual 15: Cost Development Guidelines to document the IMM calculator and provide for an annual review of the calculator to ensure compliance with the manual and Operating Agreement (OA). (See “PJM Seeks to Retire Opportunity Cost Calculator, Use IMM Tool,” PJM MRC/MC Briefs: Feb. 20, 2020.)
2. Market Participation Risk Evaluation Enhancements (10:05-10:35)
The MRC will be asked to approve OA and Tariff revisions endorsed by the Financial Risk Mitigation Senior Task Force (FRMSTF) to improve the RTO’s risk evaluations of market participants. At a daylong “page turn” of the proposed changes last month, some stakeholders complained that PJM was seeking excessive authority and that several of its proposed definitions were overly broad. (See PJM Stakeholders Debate Credit Rule Changes.)
Members Committee
Consent Agenda (1:05-1:10)
C. Members will be asked to approve changes to the fuel cost policy as proposed by the PJM Industrial Customer Coalition. The changes were approved by the MRC last month on a sector-weighted vote of 3.57 (71%) despite concerns that new safe harbor provisions would create loopholes permitting the exercise of market power. The new rules are spelled out in revisions to Schedule 2 of the OA and Manual 15: Cost Development Guidelines. (See PJM MRC OKs Revised Fuel-cost Policy.)
Endorsements/Approvals (1:10-2:00)
1. Opportunity Cost Calculator (1:10-1:20)
See description in MRC, above.
2. Market Participation Risk Evaluation Enhancements (1:20-1:45)
See description in MRC, above.
3. Elections (1:45-2:00)
A. Members will be asked to elect a new End Use Customer sector representative on the 2019-2020 Finance Committee to replace Mike Peters of Messer LLC, whose term expires in 2020.
B. The committee will be asked to approve on first read a waiver of the Manual 34 requirement that elections of board members be by secret ballot. The waiver is needed to allow use of the PJM Voting Application “due to potential exigent circumstances.”
— Rich Heidorn Jr.
