Below is a summary of the issues scheduled to be brought to a vote at the PJM Markets and Reliability and Members committees 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 (9:05-9:10)

B. The MRC will be asked to endorse revisions to Manual 15: Cost Development Guidelines resulting from the biennial periodic review process. The revisions include reformatting and rewording in sections 2.6.1 and 2.6.8 to provide more clarity.

Endorsements/Approvals (9:10-9:45)

1. 2020 Installed Reserve Margin Study Results (9:10-9:25)

Members will be asked to endorse the 2020 Reserve Requirement Study results, including the installed reserve margin (IRM) and forecast pool requirement (FPR). PJM is recommending an IRM of 14.4%, down from 14.8% in 2019. The FPR is essentially the same as 2019, at 1.0865 (8.65%) instead of 1.086 from the previous year. The study determines the IRM and FPR for 2021/22 through 2023/24 and establishes the initial values for 2024/25. The results are based on the 2020 capacity model, load model and capacity benefit of ties. (See “Installed Reserve Margin Study Results,” PJM PC/TEAC Briefs: Oct. 6, 2020.)

2. Liquidation Process (9:25-9:45)

Members will be asked to endorse proposed Tariff and Operating Agreement revisions addressing PJM’s rules for liquidating defaulted financial transmission rights positions. PJM is looking to re-establish the ability to liquidate defaulted FTR open positions and to provide flexibility in the way it exercises liquidation rights based on market liquidity, the size of the defaulted portfolio and market conditions. (See “Liquidation Process,” PJM MRC/MC Briefs: Sept. 17, 2020.)

MC endorsement will be sought on the same day.

Members Committee

Endorsements/Approvals (12:45-1:15)

1. Schedule 9-2 Options (12:45-1:00)

Stakeholders will be asked to endorse near-term changes to PJM’s administrative rates as recommended by the Finance Committee. The RTO recovers its operating expenses through Schedule 9 of the Tariff, with 90% of Schedule 9 revenue tied to actual load multiplied by a transmission factor, and the rest connected to transactional activity.

The transactional FTR billing volume, which has increased 97% since 2011, is tied to Schedule 9-2, PJM said, with the FTR administration service revenues exceeding costs because of an increase in the volume of FTR bidding activity. (See “Schedule 9-2 Options,” PJM MRC/MC Briefs: Sept. 17, 2020.)