Wind farms that fail to follow PJM’s electronic dispatch signals will no longer receive lost opportunity cost payments under a tariff amendment approved by the MRC.

Reason for change: Some wind generators are not following their economic basepoint, requiring PJM to issue manual dispatch instructions. This delays generators’ responses, causing less efficient market operations and a potential risk to system reliability, PJM says.

PJM proposed the new language as a Tariff change in response to a May 29 Federal Energy Regulatory Commission order that rejected its earlier proposal to incorporate the new rules in the Operating Agreement. The commission said the OA language “failed to provide any detail or tariff language describing the specific circumstances under which compensation would be reduced or how the compensation would be reduced.”

Impact: Would add language to section 3.2.3 of Tariff Schedule 1 to deny lost opportunity credits to pool-scheduled or self-scheduled wind generators that fail to follow PJM dispatchers’ electronic instructions to reduce output. (See PJM to Tighten Penalties on Wayward Wind.)