The Markets and Reliability and Members Committees approved modeling changes for the annual Auction Revenue Rights (ARR) allocation to reflect the return of transmission facilities to service after outages.
The current tariff states that if any ARR requests made during stage 1A of the allocation process are not feasible because of transmission outages, PJM will allow the allocation by increasing the capability limits of the binding constraints. The increased limits are then used in subsequent ARR and Financial Transmission Rights allocations and auctions for the planning year.
During the ARR allocation for the 2013/2014 planning year, PJM found infeasibilities on some paths due to planned transmission outages in the annual process that were not scheduled to be out of service every month of the planning year. Continuing the increased ratings in subsequent auctions would overstate transmission capability, exacerbating FTR underfunding.
The changes to section 7.4.2(i) of the Operating Agreement will exclude increased capability limits in monthly auctions for months in which the transmission facility is not out of service.
The MRC agreed to waive the normal 60-day review period so that the changes can be implemented in time for the May monthly balance of planning period FTR auction.
PJM contact: Tim Horger
