PJM Consolidating Rules for Dynamic Transfers

Feb 10, 2014

PJM is consolidating its rules for establishing dynamic transfers, which allow resources in one balancing authority to be operated as if they were in another BA region.

PJM is consolidating its rules for establishing dynamic transfers, which allow resources in one balancing authority to be operated as if they were in another BA region. Dynamic transfers can be accomplished through pseudo ties or dynamic schedules, which are cheaper and faster (see chart).

Dynamic Schedule Vs. Pseudo Tie (Source: PJM Interconnection, LLC)

The rules, spelled out in a draft white paper, are a response to PJM’s proposed capacity import limits (ER14-503). External generators with pseudo ties and confirmed firm transmission can win exemptions from the proposed limits if they also accept a “must-offer” requirement.

“We wanted to have a central place where all the options were collected,” PJM’s Sree Yeddanapudi told members at last week’s Operating Committee meeting.

Yeddanapudi said stakeholders wishing to have input on the draft whitepaper should submit comments by Feb. 28. The paper is scheduled for final review at the Operating Committee’s March 4 meeting.

Resources planning to use pseudo ties to make capacity offers in the 2017/18 Base Residual Auction must notify PJM of their intent by May 5.

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