WILMINGTON, Del. — The Markets and Reliability Committee last week delayed a vote on proposed manual changes over concerns that they could restrict energy efficiency participation in the capacity market. Members requested an additional education session on the issue.

The revisions aim to prevent EE resources from being counted both as capacity resources and as reductions in the load forecast. PJM proposes to use an add-back mechanism to accommodate continued EE participation when a new load forecast model is adopted.

Energy efficiency resources may be used to replace the commitment of a similar resource because such commitments would have been accounted for by the add-back. However, when it comes to using EE resources to replace non-EE capacity resources, they would be limited to the difference between the add-back of the third incremental auction for a delivery year and the cleared quantity of energy efficiency resources in that same auction.

“The concern is that the add-back might be greater than what might clear,” said Jeff Bastian, manager of capacity market operations.

Several members expressed concern that the eligibility requirements outlined in the changes restrict the time periods that EE resources may offer.

“I have an issue regarding the eligibility and the way EE is treated as a capacity resource. It becomes ineligible in the same year that it cleared in the [Base Residual Auction],” said Carl Johnson, representing the PJM Public Power Coalition. “I struggle to think of a resource that is ineligible depending on when it is offered in.”

“The resource is unique in that it can get buried in the load forecast,” explained Stu Bresler, PJM senior vice president for markets. “We’re doing everything we can to preserve EE as [a Reliability Pricing Model] option. The other option is to not include it in the auction.”

Bruce Campbell of EnergyConnect said he opposed the changes.

“I think it’s a really dangerous path to go down to say we’re not going to let resources participate as RPM resources because it will make our forecast look bad,” he said. “That’s just wrong.”

Responded Bresler: “The bottom line is if we don’t include it in the load forecast three years ahead, we miss the chance, and it’s been rolled in by the time that year comes around.”

The educational session on the revisions proposed for Manual 18: PJM Capacity Market and Manual 18B: Energy Efficiency Measurement & Verification is tentatively scheduled for Dec. 9.

Members Approve Manual Changes

Members endorsed the following manual changes:

• Manual 01: Control Center and Data Exchange Requirements. Adds requirements and changes terminology to be consistent with North American Electric Reliability Corp. standards. Adds two communications requirements: voice communications between transmission owners and distribution providers in the transmission owner area, and between transmission owners and generator operators. Adds term “interpersonal communication” for voice communication. Identifies satellite telephones as preferred method of communication. New section requires that communication failures lasting 30 or more minutes be reported within 60 minutes of detection. Makes minor edits for clarity. Removes dated reference to “floppy disk.”
• Manual 03: Transmission Operations. Changes resulting from bi-annual review include project updates, edits and reorganization of sections. Updates generator voltage schedule to define coordination. Changes will be implemented Dec. 1.
• Manual 12: Balancing Operations. Updates due to new instantaneous reserve check implementation. Eliminates mention of MISO as the interconnection time monitor. Replaces the term “supplemental reserve” with “secondary reserve.” Changes will be implemented Dec. 1.
• Manual 13: Emergency Operations. Updates day-ahead scheduling reserve requirement to 5.7% from 5.93% for Reliability First Corp. effective Jan. 1. Other changes made for consistency. Removes requirement that generators connected below 230 kV participate in voltage reduction.
• Manual 14B: PJM Regional Transmission Planning Process. Updates for compliance with NERC standards.
• Manual 14B: PJM Regional Transmission Planning Process. Changes reflect new process of considering energy market uplift in development of the Regional Transmission Expansion Plan.

New Load Forecast Model, Related Manual Changes Adopted

With three abstentions, members endorsed revisions to Manual 19: Load Forecasting and Analysis to reflect updates to the PJM load forecast model.

The changes add variables to account for trends in equipment and appliance saturation and energy efficiency; revise weather variables; update weather station assignment to zones; and revise the weather normalization procedure.

PJM will be publishing a white paper in 2016 to provide more detail on the forecast model.

PJM’s Tom Falin said the impact of the change in solar generation is being quantified, and the committee will be asked to endorse related manual changes in December.

Subcommittee’s Proposed Changes to Governing Documents OK’d

The committee endorsed modifications, clarifications and revisions to 12 terms in PJM governing documents.