The Markets and Reliability Committee Thursday approved two changes to the modeling of Financial Transmission Rights — an effort PJM hopes will reduce the risk of FTR funding shortfalls.
The changes make FTR modeling more consistent with that used in the energy markets and reduce or remove infeasibilities in the FTR model, allowing increased counterflow FTRs to clear.
The Financial Transmission Rights Task Force chose the two changes from more than 20 options.
Under the first change, PJM “may model normal facility capability limits, if possible, for all Stage 1A over allocated facilities in FTR Auctions.”
The second change will allow PJM to “model normal facility capability limits, if possible, on facilities which are infeasible as a result of modeled transmission outages in monthly FTR Auctions.”
PJM’s Tim Horger said the RTO hadn’t quantified the impact of the changes, although an analysis for one constraint found more than a $15 million improvement in FTR adequacy.
