December 23, 2024
Combined-Cycle Model Needs Cost-Benefit Check
PJM will perform a cost-benefit analysis before proceeding with a combined-cycle bidding model expected to cost up to $1 million.

PJM will perform a cost-benefit analysis before proceeding with a combined-cycle bidding model expected to cost up to $1 million.

Combined Cycle Plant Diagram (Source: General Electric Company)
Combined Cycle Plant Diagram (Source: General Electric Company)

PJM’s Tom Hauske told the Operating Committee that incorporating the Alstom model — chosen by the OC to ensure more consistency among offers — will be more complicated and costly than initially expected. Hauske said the changes will affect more than eMKT and scheduling and won’t be implemented until 2015 instead of June 2014.

Given the new cost estimate of between $750,000 and $1 million, Hauske said, “We have to be able to justify it” for inclusion in PJM’s budget.

All 53 combined-cycle units in PJM, which can now offer as steam units or combustion turbines, would be required to use the new model. Sellers will have to offer the new combined cycle configurations for at least three months. All units would be aggregated under one unit ID.

GenerationPJM Operating Committee (OC)

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