Members last week approved manual changes implementing PJM’s seasonal verification rules, adding a transition period for units that have not been conducting the required tests.
The rules require all steam generation units to correct their capacity ratings to reflect ambient temperatures. About half of PJM’s steam units already adjust their ratings although Manual 21 requires adjustments only for combustion turbines and combined cycle plants. The changes endorsed last week by the Planning and Market Implementation committees adds the correction requirements for nuclear, coal and oil units.
In addition, all hydro and pumped storage units will be required to perform verification tests during the summer. Previously, some of these generation owners were performing tests at other times of the year.
The MIC endorsed a transition mechanism that will allow generation owners options for addressing any capacity shortfalls that result from reduced installed capacity (ICAP) ratings under the corrected measurements.
Generation owners will have the option of seeking a capacity modification, and covering their deficiency with other assets or capacity purchases, or seeking forgiveness for shortfalls and relinquishing capacity revenues for the shortfall.
PJM sought an April 1 deadline for generation owners to make their choice for their entire portfolio.
“This was [suggested] in recognition that some generation owners are already providing adjusted results, while others haven’t,” said Stu Bresler, vice president of market operations.
Bresler resisted a request to allow generation owners to make decisions on individual units rather than their entire portfolios. “Our thought was we’d make it a one-time election,” he said. “It may seem inequitable to let GOs pick and choose what adjustments best suit them.”
Under a “friendly amendment” accepted by PJM, owners will have until April 1 for units providing capacity in delivery year 2014/15; June 1 for capacity for DY 2015/16 and Aug. 1 for DY 2016/17.
