Members approved yet another initiative to address reliability concerns over gas-fired generators, agreeing to consider changes to the way such units submit energy and capacity market offers.
Under a problem statement approved by the Market Implementation Committee Wednesday, members will consider ways to reduce the confusion that occurred on the coldest days of last winter, when some gas-fired generators were unable to obtain fuel, some claimed costs above the $1,000/MWh offer cap and others ended up with “stranded” gas after PJM cancelled plans to dispatch them. (See PJM Backs Duke’s $9.8M ‘Stranded Gas’ Claim.)
The effort will attempt to design rules that allow generators to submit offers that better reflect often volatile natural gas prices. Among potential changes: allowing generators to change their energy market offers during the operating day and submit differing hourly offers in the real-time market, as the New York ISO allows.
Carl Johnson, representing the PJM Public Power Coalition, expressed concern that stakeholders’ multiple gas-electric coordination initiatives could result in changes whose interactions are not well understood. “We have, at my count, six problem statements … on gas issues,” he said. “I’m concerned as we march forward … how these timelines will work together.”
Dan Griffiths, executive director of the Consumer Advocates of PJM States (CAPS), also expressed concern. “The expectation for compromise gets less and less as you get more and more complex,” he said.
John Horstmann of Dayton Power & Light Co. suggested the issue could be handled by one of the groups already dealing with gas-electric issues. PJM staff agreed to review work assignments and make a recommendation at next month’s MIC meeting, when stakeholders will consider a proposed Issue Charge.
