WILMINGTON, Del. — Members approved changes to Manual 18 necessary to incorporate Capacity Performance in the upcoming Base Residual Auction.
The motion passed over one objection and 25 abstentions.
PJM officials said stakeholders have expressed concern about approving manual language when some aspects of the new product are still in flux. (See PJM Delays Vote on Capacity Performance Rules.)
They said more educational workshops are planned and that the minutes of Thursday’s meeting will explicitly state that the vote was taken with the recognition that additional details may need to be worked out as the process moves forward.
In separate but related changes to Manual 20: PJM Resource Adequacy Analysis, members set constraints for two limited availability resources that will be permitted to participate in the 2018/19 and 2019/20 delivery years. The constraints are necessary to ensure reliability.
Base Capacity DR is available for interruption every day from June 1 through Sept. 30 and unavailable the rest of the year. Its constraint was set at 8.3% of the resource requirement.
Base Capacity Generation is assumed to be available throughout the delivery year except for one week at the winter peak. Its constraint was set at 18.9%.
Details of the constraint computation methodology were added as Section 6.
Early Capacity Replacement Approved
The committee endorsed manual changes allowing market participants to enter replacement capacity transactions earlier than Nov. 30 prior to the start of the delivery year if the need is linked to a physical reason that would prevent a participant from meeting its commitment. The changes prohibit generation that is replaced early from being recommitted for the delivery year. (See Earlier Replacement Capacity Transactions Approved.)
The PJM motion passed with a 68.8% sector-weighted vote. As a result, an alternative proposal by Baltimore-based CPower was not considered. It would have allowed the early replacement transactions without the restrictive conditions. Consultant Tom Rutigliano, who made the proposal, said that PJM’s restrictions are discriminatory against demand response and energy efficiency resources, prevent resources from following price signals and restrict options for reliability.
Task Force to Study Regulation Market Issues
The Independent Market Monitor won approval of a problem statement and issue charge surrounding concerns that PJM is buying too much fast-responding RegD resources in the regulation market. The initiative also will consider changes to the marginal benefit factor that defines that substitutability between RegA and RegD megawatts, which the Monitor says is faulty. (See PJM Market Monitor: Faulty Marginal Benefit Factor Harming Regulation.)
The motion passed with 65.8% in a sector-weighted vote.
Some stakeholders voiced concern over approving a new initiative while PJM is examining related issues through its Operating Committee and still digesting the transition to Capacity Performance.
Monitor Joe Bowring said it makes sense for the study of market design and of the marginal benefit factor to be considered on parallel tracks.
“I don’t think we can allow the market to be dysfunctional much longer,” he said. “There’s always going to be a million things going on at PJM.”
Added Mike Kormos, committee chair, “We cannot continue to carry as much RegD as we have and maintain control.”
Tariff Harmonization Task Force to Become Subcommittee
Instead of creating a separate group to clean up language in the RTO’s governing documents that is “ambiguous, incorrect or requires clarification,” the committee agreed to remodel the Tariff Harmonization Senior Task Force as a subcommittee and assign it the task. (See PJM Law Proposes Cleaning up Language in Governing Documents.)
Meanwhile, the Tariff Harmonization Senior Task Force won endorsement for its first batch of seven revised definitions. (See Task Force Proposed to Resolve Inconsistencies in PJM Governing Documents.)
Committee Shoots Down ODEC FTR/ARR Proposal
Garnering just 59% of a sector-weighted vote, Old Dominion Electric Cooperative fell short of winning approval for a proposal that combined recommendations from PJM and the Market Monitor in redesigning the financial transmission rights and auction revenue rights process. (See ODEC Seeks Last-Ditch Vote on Deadlocked FTR/ARR Issue.)
The committee later unanimously agreed to disband the FTR/ARR Senior Task Force.
Two-tiered Fee Schedule for Order 1000 Projects OK’d
Members endorsed a two-tiered fee schedule for proposed transmission projects. For greenfield projects or upgrades between $20 million and $100 million, PJM will assess $5,000 to cover its study expenses. Projects costing at least $100 million will be charged $30,000. Previously, a $30,000 fee for all projects greater than $20 million had been approved, but planners later realized they likely wouldn’t need to collect that much to cover the costs of reviewing the proposals. (See PJM Lowers Proposed Tx Project Study Fee.)
Tweaks to Merchant Network Upgrade Language Approved
The committee endorsed new tariff language to more accurately reflect how PJM processes requests for merchant network upgrades. The changes address definitions, queue entry, agreements and the capacity market.
Manual 01, 13 Changes Endorsed
Members unanimously approved a significant update and reorganization to Section 5 of Manual 01: Control Center and Data Exchange Requirements, introducing definitions of two major data types: System Control and Monitoring (Instantaneous) and Billing (Accumulated). Changes also update references to OASIS and add requirements regarding synchrophasor data exchange.
The MRC also endorsed amendments to Manual 13: Emergency Operations, including administrative changes, clarifications and updates. The committee added a reference to Manual 12 for member actions when PJM loads 100% synchronized reserves and a reference to the instantaneous reserve check process.
— Suzanne Herel