PJM MRC Preview: July 25, 2019
A summary of the issues scheduled to be brought to a vote at the PJM Markets and Reliability Committee on Thursday, July 25, 2019.

Below is a summary of the issues scheduled to be brought to a vote at the PJM Markets and Reliability Committee 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.

Consent Agenda (9:20-9:25)

PJM stakeholders will be asked to endorse the following manual revisions:

B. Manual 13: Emergency Operations, to provide a single location for reporting operational restrictions that impact multiday operations planning, replacing multiple forms of reporting currently employed by members. The changes, which incorporate lessons learned from 2018/19 winter operations, are intended to improve operators’ situational awareness and communication regarding cross-sector interdependencies. The changes align with new Markets Gateway functionality for resource limitation reporting to be implemented on Aug. 1 and adds clarifications on which units may be placed in max emergency during emergency operations.

C. Manual 18: PJM Capacity Market, adding administrative updates, deleting outdated provisions and adding revisions to conform with FERC orders resulting from a periodic review.

D. Manual 21: Rules & Procedures for Determination of Generating Capability to clarify capacity injection rights (CIR) evaluations and conform with Tariff changes. Adds more explicit explanations and some omitted testing criteria regarding CIR evaluations for combined cycle units. Re-classifies run-of-river hydro units with storage and dispatch capability.

E. Manual 28: Operating Agreement Accounting resulting from the periodic review. Adds documentation of the process to be used if state estimator loss data are unavailable for calculating transmission loss deration factors. Deletes obsolete section on calculation of credits for quick-start reserves. Updates credit calculation for resources providing reactive services. Update formula terms for consistency.

F. Manual 39: Nuclear Plant Interface Coordination resulting from the periodic review with the Nuclear Generators Owners User Group (NGOUG). Adds language on coordination around remedial action and load shedding schemes. Adds language regarding the regulatory requirements of the deactivation and retirement process. Adds language to address the coordination between reliability coordinators.

Endorsements/Approvals (9:25-10:35)

1. PJM Manual 14B Amendments (9:25-10:25)

After seven months and three deferrals, the MRC is scheduled to vote on language that alters the way PJM manages supplemental projects in the Regional Transmission Expansion Plan.

Both RTO staff and LS Power’s Sharon Segner pushed for the 30-day deferral at the June MRC meeting, saying that stakeholders at the special Planning Committee sessions had four issues to resolve before seeking a vote. (See “RTEP Poll,” PJM MRC/MC Briefs: June 27, 2019.)

Segner gave a brief description of the four outstanding issues: conversion and how supplementals become baseline projects without undergoing the Order 1000 planning process; the displacement of supplemental projects through the regional planning process; ensuring that supplemental projects do not undermine the integrity of the Order 1000 process; and PJM’s authority to remove supplementals from the RTEP once permits have been denied.

2. Stakeholder Process Task Force Sunset (10:25-10:35)

Stakeholders will be asked to endorse sunset of both the Energy Price Formation Senior Task Force and the Energy Market Senior Uplift Senior Task Force.

The uplift group formed in 2013 and completed its work in 2017 with changes to the Operating Agreement to restrict the locations for up-to-congestion trades, increment offers and decrement bids. (See “Stakeholders Endorse Third Phase of PJM’s Uplift Solution Despite Opposition,” PJM MRC/MC Briefs: June 22, 2017.)

PJM filed its price formation plan with FERC in March and awaits a ruling. (See PJM Files Energy Price Formation Plan.)

– Christen Smith

PJM Markets and Reliability Committee (MRC)

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