Citing reliability concerns, the Markets and Reliability Committee agreed Thursday to expand the scope of a task force exploring compensation and incentives for black start generators.
The revised charter for the System Restoration Strategy Task Force will allow the group to consider changes to black start procurement, cost allocation and compensation, including “back stop” options if response to PJM’s voluntary request for resources leaves gaps in coverage.
Dana Horton, of AEP, noted that much of PJM’s black start capability is provided by coal-fired units scheduled for retirement. “We’ve never had a need to replace so many black start units,” he said.
The MRC approved the change over the objection of several members, who said PJM should evaluate the impact of changes approved in February before it considers additional ones. The motion to approve the revised charter was approved by acclimation, with 19 no votes.
MRC in February broadened its definition of “critical load” and increased the number of generators that could restore service to the load following a disruption. MRC also said black start units in one zone will be allowed to help restart generation in neighboring zones, allowing more efficient use of existing resources.
Michael Kormos, PJM senior vice president of operations, said the RTO won’t know the impact of the changes until it gets the results of its solicitation for black start generators at the end of 2013. “To start that conversation at that time would be too late [to prepare] for 2015,” Kormos said. “It’s going to put us in a big hole.”
Chantal Hendrzak, facilitator of the taskforce, said the group will research potential incentives for quick-starting units and how other RTOs procure and compensate black start resources.
Steve Lieberman, of Old Dominion Electric Cooperative, said the task force should consider all of the compensation other RTOs provide generators, not just black start compensation. Lieberman joined Bill Schofield, representative of the PJM Public Power Coalition, in calling the expanded charter premature.
Gloria Godson, vice president of federal regulatory policy for Pepco Holdings Inc., who noted her company owns no generation, supported the expanded study. “We don’t have credible responses” to the solicitations, she said. “Something needs to change.”
Dave Weaver, Exelon’s director of transmission operation and planning, also cited the coal retirements in calling for a broader charter. “I’m not convinced the changes we’ve made, although good changes,” are enough, Weaver said. “The iron in the ground remains the same … To me it’s really irresponsible to not have this plan in place.”
PJM Contact: Chantal Hendrzak
