The Market Implementation Committee approved changes to implement Residual Zone Pricing, the integration of the East Kentucky Power Cooperative and market procedures to be used if the RTO loses Internet service.
Residual Zone Pricing
Residual Zone Pricing will replace physical zone LMPs for real-time load effective June 1, 2015. A Residual Zone is an aggregate of all load buses in the physical zone, excluding load priced at nodal locations.
Reason for Changes: Manual revisions are required to implement Residual Zone Pricing, which was endorsed by the Members Committee in February 2012 and approved by FERC in Docket ER13-347.
Impact: The following manuals will be changed: M6: ARR/FTR election language (sections 3 and 4); M11: Energy & Ancillary Services Market Operations (section 2); M27: Open Access Transmission Tariff Accounting (section 5), and M28: Operating Agreement Accounting (sections 3, 8.3, 9.3 and 11).
Residual Metered Load aggregate definitions used for ARR/FTR purposes are fixed for the planning period.
PJM Contact: Suzanne Coyne
EKPC Integration
Reason for Changes: Adds the East Kentucky Power Cooperative zone into PJM markets manuals as a result of the coop’s integration into PJM effective June 1.
Impact: Changes to the following manuals: M11: Energy & Ancillary Services Market Operations (sections 2.13 and 10.4.2); M18: PJM Capacity Market (sections 2.3.1 and 3.3.1); M27: Open Access Transmission Tariff Accounting (sections 2.2, 5.3, 8.1 and 8.1.1), and M28: Operating Agreement Accounting (section 5.3).
PJM Contact: Brigid Cummings
Suspension of Day-Ahead Market for Loss of Internet
Reason for Changes: PJM has no procedures for responding to an extraordinary event, such as an Internet failure, that disables the RTO’s eMKT application. Tariff revisions are required to implement a procedure for suspending the day-ahead market when loss of the Internet or other extraordinary circumstances prevents market clearing. (See “PJM Working on Contingency Plan for Loss of Internet”)
Impact: All market settlements would be done in real time if PJM loses Internet service. The procedure requires changes to sections 1.10.8 and 1.10.9 of the Open Access Transmission Tariff, including clarification that the rebid period will be from 4:00 PM to 6:00 p.m. but may be revised by PJM if the clearing of the day-ahead energy market is significantly delayed.
PJM Contact: Ray Fernandez
Regulation Market
Reason for Changes: New rules implemented in October require regulation offers to include capability (cost, in $/MWh to reserve a resource for regulation) and performance (costs of tracking the regulation signal in miles/MW). Previous rules, as defined in Manual 15, did not include performance costs.
Impact: Inserts regulation cost information in M15: Cost Development Guidelines (sections 2.8 and 11.8) and removes it from M11 – Energy & Ancillary Services Market Operations (sub-section 3.2.1).
Also updates the example of a regulation cost offer calculation (section 2.8) and redefines energy storage losses (section 11.8) in M15 and removes heat rate process information from M11 (section 3.2.1) and moves it to eMKT User Guide.
PJM contact: Jeff Schmidt
