PJM MRC/MC Preview: June 22, 2017
A summary of the issues scheduled to be brought to a vote at the Markets and Reliability Committee and Members Committee on June 22, 2017.

Below is a summary of the issues scheduled to be brought to a vote at the Markets and Reliability and Members committees Thursday. 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 in RTO Insider.

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 proposed manual changes:

A. Manual 14A: Generation and Transmission Interconnection Process and the Tariff. Revisions developed to the manual and the Tariff to allocate reinforcement costs of less than $5 million to all projects in a queue that add load to the violation causing the need for the reinforcement. Also removes alternate queue screening, allowing projects to be evaluated for impacts once the point of interconnection has been established. (See “Should I Stay or Should I Go? PJM Still Searching for Resolution to Interconnection Queue Issues,” PJM Planning and Tx Expansion Advisory Committees Briefs.)

B. Manual 14C: Generation and Transmission Interconnection Facility Construction. Revisions developed to incorporate the minimum engineering design standards developed by the Designated Entity Design Standards Taskforce for competitively solicited projects for transmission lines, substations and “system protection and control design and coordination.” (See “Competitive Planning Components Endorsed; Pieces Remain,” PJM Planning & Tx Expansion Advisory Committees Briefs.)

C. Manual 14F: Competitive Planning Process. A new manual that consolidates PJM policies implementing FERC Order 1000. (See “Competitive Planning Components Endorsed; Pieces Remain,” PJM Planning & Tx Expansion Advisory Committees Briefs.)

D. Manual 20: PJM Resource Adequacy Analysis. Revisions developed to address changes to modeling of zonal and global locational deliverability areas for capacity emergency transfer objective calculations. (See “ISO-NE out of this ‘World,’ According to PJM Reserve Requirement Study,” PJM Planning Committee/TEAC Briefs.)

E. Manual 28: Operating Agreement Accounting. Revisions conform with FERC order in docket ER16-121-001 requiring allocation of balancing congestion and real-time market-to-market payments to real-time load plus exports on a pro rata basis RTO-wide. (See FERC Finds PJM ARR/FTR Market Design Flawed; Rejects Proposed Fix and “FTR Revisions Continue Forward,” PJM Market Implementation Committee Briefs.)

F. Manual 39: Nuclear Plant Interface Coordination. Revisions clarify that nuclear operators must communicate any limiting conditions affecting interface requirements following notification of a grid-side event. The revisions, which include limits on the operability of offsite power sources, are intended to ensure that PJM and the transmission owner local control center have situational awareness of nuclear plant conditions.

3. Pseudo-Tie Pro Forma (9:40-10:15)

Members will be asked to endorse proposed pro forma agreements, along with corresponding Tariff and Operating Agreement revisions. A draft dynamic schedule agreement will also be presented, but it will be voted on at a future meeting. (See “Pseudo-Tie Discussion Postponed to Continue Negotiations with MISO,” PJM Markets and Reliability Committee Briefs.)

4. Regulation Market Issues Senior Task Force (RMISTF) (10:15-10:45)

Members will be asked to endorse the regulation market changes proposed by PJM and the Independent Market Monitor and endorsed by the Regulation Market Issues Senior Task Force. The changes affect benefit factors, performance scoring and settlements, and implements a 24-month transition plan. (See “Stakeholders Defer Vote on Regulation Revisions,” PJM Markets and Reliability Committee Briefs.)

Members Committee

Consent Agenda (1:20-1:25)

Members will be asked to endorse:

B. Operating Agreement and Tariff revisions requiring solar generators to provide meteorological and forced outage data — previously only required from wind generators — in compliance with FERC Order 764. (See “Solar Forecast Is Coming,” PJM Planning and Tx Expansion Advisory Committees Briefs.)

C. Operating Agreement and Tariff revisions create a method for compensating pseudo-tied generators and dynamic schedules, which are not eligible to submit meter correction data, as permitted for internal generators and tie lines. (See “Meter Correction Initiative OK’d,” PJM Market Implementation Committee Briefs.)

D. Operating Agreement and Tariff revisions related to annual revenue requirements for new black start units. Sets deadlines for the submittal and review of new black start units’ capital, variable and fuel storage costs; policies for allocating costs to network service customers and point-to-point reservations. (See “New Black Start Units Will Have New Annual Revenue Requirements,” PJM Markets and Reliability Committee Briefs.)

1. Energy Market Uplift Senior Task Force (1:25-1:45)

Members will be asked to endorse proposed Tariff and Operating Agreement revisions intended to preserve the benefits of virtual trading while eliminating opportunities for such transactions to profit from the market without providing benefits. Increment offers (INCs) and decrement bids (DECs) are permitted at locations where the settlement of physical energy occurs plus trading hubs; up-to-congestion transactions are permitted at hubs, zones and interfaces. (See PJM MRC OKs Uplift Solution over Financial Marketers’ Opposition.)

– Rory D. Sweeney

Ancillary ServicesGenerationPJM Markets and Reliability Committee (MRC)PJM Members Committee (MC)TransmissionVirtual Transactions

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