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 in Valley Forge, Pa., covering the discussions and votes. See next Tuesday’s newsletter for a full report.

Markets and Reliability Committee

Consent Agenda (9:15-9:20)

Members will be asked to endorse:

B. Tariff and Operating Agreement revisions developed by the Governing Documents Enhancement & Clarification Subcommittee (GDECS).

1. PJM Manuals (9:20-9:35)

Members will be asked to endorse the following proposed manual changes:

A. Manual 1: Control Center and Data Exchange Requirements. Revisions developed to change system operator communication protocols while controlling facility constraints and data specification and collection requirements during outages.

B. Manual 15: Cost Development Guidelines. Revisions developed as part of the manual’s biennial review.

C. Manual 14F: Competitive Planning Process. Revisions developed to implement cost-containment elements in PJM’s transmission planning process. (See “Manual 14F Changes,” PJM PC/TEAC Briefs: Aug. 9, 2018.)

2. Behind-the-Meter Generation (9:35-9:50)

Members will be asked to endorse a proposal and associated manual revisions developed by the Distributed Energy Resources Subcommittee that would give PJM and transmission owners better observability of behind-the-meter generation resources. (See “BTM Visibility,” PJM MRC/MC Briefs: Aug. 23, 2018.)

3. Market Seller Offer Cap Balancing Ratio Proposal (9:50-10:05)

Members will be asked to endorse a proposal approved by the Market Implementation Committee that would change how PJM estimates the expected future balancing ratio used in the default market seller offer cap. The proposed method would take the average balancing ratios during the three delivery years that immediately precede the Base Residual Auction using actual balancing ratios calculated during RTO performance assessment intervals (PAIs) of the delivery years, along with estimated balancing ratios calculated during the intervals of the highest RTO peak loads that do not overlap a PAI for any preceding delivery year with less than 360 intervals (30 hours) of RTO PAIs. (See “Balancing Ratio,” PJM Market Implementation Committee Briefs: July 11, 2018.)

4. Variable Operations and Maintenance (10:05-10:25)

Members will be asked to endorse a proposal documented in draft revisions to Manual 15: Cost Development Guidelines, the OA and Tariff. The proposal has been revised from what the MRC voted on previously to remove inclusion of fixed costs for energy resources and units that did not clear the capacity auction, and to include the variable operations and maintenance language in the OA and Tariff, meaning that the revisions would only be implemented with FERC approval. (See PJM Ponders Advancing VOM Effort over Objections.)

5. Quadrennial Review (10:25-10:45)

Members will be asked to endorse one of several proposed packages to revise PJM’s variable resource requirement demand curve as part of its quadrennial review. Among them are the RTO’s recommendations and a proposal from the D.C. Office of the People’s Counsel. (See “Concessions of VRR Curve Recommendations,” PJM Market Implementation Committee Briefs: Sept. 12, 2018.)

6. FTR Default Liquidation Provisions (10:45-11:15)

Members will be asked to endorse on first read one of six proposals and the status quo regarding alternative financial transmission rights default liquidation provisions and associated revisions to governing documents. If no proposal is endorsed, Citigroup Energy’s Barry Trayers is expected to move, and EDP Renewables’ John Brodbeck expected to second, a motion to extend the pending FERC filing to not offer the defaulted FTR positions for liquidation for an additional 90 days. (See GreenHat FTR Default a ‘Pig’s Ear’ for PJM Members.)

Members Committee

Consent Agenda (1:20-1:25)

Members will be asked to endorse:

B. Open Access Transmission Tariff and Reliability Assurance Agreement revisions associated with the registration process for aggregated seasonal demand response resources. (See “Seasonal Aggregation,” PJM MRC/MC Briefs: July 26, 2018.)

1. FTR Liquidation Process (1:25-1:45)

Members will be asked to endorse proposed OA and Tariff revisions associated with FTR default liquidation. If no proposal in agenda item 1.A is endorsed, then members will be asked to approve a motion to extend the pending FERC filing to not offer the defaulted FTR positions for liquidation for an additional 90 days. (See MRC item 6 above.)

2. Market Efficiency Process Enhancement Proposal (1:45-2:00)

Members will be asked to approve phase 1 of a proposal developed at the Market Efficiency Process Enhancement Task Force and associated OA revisions. (See “Market Efficiency,” PJM MRC/MC Briefs: Aug. 23, 2018.)

3. Opportunity Cost Calculator (2:00-2:30)

Members will be asked to approve proposed OA Schedule 2 revisions related to opportunity cost calculators. Bob O’Connell with Panda Power Funds has offered one proposal and PJM is proposing an alternative. (See related story, PJM Monitor Holding Firm on Opportunity Cost Calculator.)

4. Variable Operations and Maintenance (2:30-2:45)

Members will be asked to endorse/approve proposed revisions to Manual 15: Cost Development Guidelines, the OA and Tariff regarding VOM. (See MRC item 4 above.)

5. Quadrennial Review (2:45-3:00)

Members will be asked to endorse proposed Tariff revisions associated with the quadrennial review of Reliability Pricing Model parameters. (See MRC item 5 above.)

6. Liaison Committee Charter (3:00-3:30)

Members will be asked to approve a motion to grant exceptions to the Liaison Committee charter addressing attendance at the Oct. 3, 2018, LC meeting with the Board of Managers. The exception brought by Greg Poulos, Consumer Advocates of the PJM States (CAPS) executive director, would allow RTO management and staff, state commission representatives, the Independent Market Monitor and FERC staff to attend the meetings.

— Rory D. Sweeney