Reason for change: The Market Implementation Committee (MIC) created the Reliability Limited Generator Compensation Task Force (RLGCTF) on Feb. 17, 2012 to determine compensation for generating resources operating outside of their defined reliability limits. The task force focused on what level of Lost Opportunity Cost (LOC) should be compensated.

Impact: The MIC determined that generators will be paid LOC at the lesser of the Economic Maximum or Maximum Facility Output (MFO) of the generator. Schedule 1 of the Operating Agreement is amended, including clarifications of definitions:

• “Economic Minimum” shall mean the lowest incremental MW output level, submitted to PJM market systems by a Market Participant, that a unit can achieve while following economic dispatch.
• “Economic Maximum” shall mean the highest incremental MW output level, submitted to PJM market systems by a Market Participant, that a unit can achieve while following economic dispatch.

PJM Contact: Heather Reiter