Members hit the brakes Wednesday on a proposed new product for scheduling trades between PJM and the New York ISO.
PJM officials, who had planned to ask the Market Implementation Committee to endorse the proposal, postponed a vote in order to provide answers to members’ questions.
“The devil is in the details with this product,” said Jung Suh, of retailer Noble Americas Energy Solutions, LLC. He said his company’s traders would need to review the proposed rules and procedures before he could support the change.
Under the current system, according to PJM, power often flows from PJM into New York even when PJM’s prices are higher.
The new product, Coordinated Transaction Scheduling (CTS), is intended to reduce uneconomic power flows between the two regions. Traders would be able to submit “price differential” bids that would clear when the price differences between New York and PJM exceed a threshold set by the bidder. (See PJM, NYISO Tout New Option to Improve Power Scheduling.)
Other members had questions about the impact on balancing congestion and Financial Transmission Rights and asked for data to analyze price risks.
Ed Tatum, vice president of RTO & regulatory affairs for Old Dominion Electric Cooperative also said he needed more details before he could vote. “Based on what I’ve heard, it sounds like a good idea,” he said.
