Below is a summary of the issues scheduled to be brought to a vote at the Markets and Reliability Committee on Thursday. The Members Committee held its monthly meeting last week at PJM’s Annual Meeting. (See related coverage, PJM Annual Meeting Celebrates RTO’s First 90 Years.)
Each item is listed by agenda number, description and projected time of discussion, followed by a summary of the issue and links to prior coverage. RTO Insider will be in Wilmington, Del., covering the discussions and votes. See next Tuesday’s newsletter for a full report.
Markets and Reliability Committee
2. PJM Manuals (9:10-9:40)
Members will be asked to endorse the following manual changes:
A. Manual 3: Transmission Operations. Revisions developed in response to a periodic review.
B. Manual 6: Financial Transmission Rights. Revisions developed in response to FERC rulings impacting the annual auction revenue rights/FTR process: stage 1 replacements and balancing congestion; FTR forfeitures; and residual ARRs (EL14-37, EL16-6, ER16-121-001). (See FERC Orders Portfolio Approach for PJM FTR Forfeiture Rule, FERC Accepts PJM’s FTR Plan, Rejects Rehearing Requests.)
C. Manual 14D: Generator Operational Requirements. Revisions to develop requirements for solar generation facilities, in compliance with FERC Orders 828 (Requirements for Frequency and Voltage Ride Through Capability of Small Generating Facilities), issued July 21, 2016, and Order 764 (Integration of Variable Energy Resources) issued June 22, 2012. (See FERC Issues Ride-Through Requirement for Small Generators.)
D. Manual 36: System Restoration. Revisions developed in response to a periodic review.
E. Manual 13: Emergency Operations. Attachment E updated with 2017/18 load forecast and Mid-Atlantic load shed allocation information; Attachment F updated with 2017/2018 load shed capabilities and allocation percentages. The data in the attachments affects only transmission owners and has been validated by them.
3. New Black Start Unit Annual Revenue Requirements (9:40-9:55)
Members will be asked to endorse manual and Tariff revisions regarding the annual revenue requirements for new black start units. (See “PJM to Review Black Start Prior to New RFP,” PJM Market Implementation Committee Briefs.)
4. Monthly Meter Correction (9:55-10:10)
Members will be asked to endorse manual revisions to allow for monthly correction of meters for pseudo-tied units and dynamic schedules. (See “Meter Correction Initiative OK’d,” PJM Market Implementation Committee Briefs.)
5. Primary Frequency Response (10:10-10:30)
Members will be asked to endorse a PJM-proposed problem statement and issue charge to investigate potential changes to generator primary frequency response requirements. The proposed inquiry is in response to a 2012 NERC report that found only 30% of online units provide primary frequency response. and only 10% of them sustain it. (See FERC: Renewables Must Provide Frequency Response, “Stakeholders Push Back on Paying for Frequency Response,” PJM Markets and Reliability and Members Committees Briefs.)
6. Long-Term FTRs (10:30-10:50)
Members will be asked to endorse a proposed problem statement and issue charge to consider ways to incorporate upgrades approved in the Regional Transmission Expansion Plan in the network model used for FTR auctions. PJM is proposing the initiative out of concern that clearing prices for long-term FTR auctions may not fully reflect future system capabilities.
7. Incremental Auction Senior Task Force (IASTF) Update (10:50-11:00)
Members will be asked to approve an updated charter for the IASTF, which was created in response to a problem statement by Direct Energy that was approved by the MRC in November 2016. The revisions reflect an increase in scope resulting from a problem statement by NRG Energy on replacement capacity that was approved in March 2017. The revisions set a target for completing work and making recommendations to the MRC by January 2018. (See “Stakeholders Approve Variety of Actions,” PJM Markets and Reliability and Members Committees Briefs.)
8. Pseudo-tie Pro Forma (11:00-11:30)
Members will be asked to endorse several items related to creating a pro forma pseudo-tie agreement, including the agreement, a pseudo-tie reimbursement agreement and associated Tariff and Operating Agreement revisions. (See Pseudo-Tie Feud Rises as Patton, NYISO Protest PJM Proposal.)
– Rory D. Sweeney