Below is a summary of the agenda items scheduled to be brought to a vote at the PJM Markets and Reliability Committee and Members Committee meetings Wednesday. 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.

Markets and Reliability Committee

Consent Agenda (9:05-9:10)

The MRC will be asked to endorse revisions to the following manuals as part of its consent agenda:

• • • Manual 10: Pre-Scheduling Operations, Manual 12: Balancing Operations and Manual 13: Emergency Operations, to address the reserve price formation implementation;
    • Manual 14D: Generator Operational Requirements and Manual 13: Emergency Operation, to conform with NERC standards EOP-011, IRO-010 and TOP-003;
    • Manual 15: Cost Development Guidelines, to address reserve price formation implementation and changes resulting from the manual’s periodic review process. Same-day endorsement may be sought at the MRC and MC meetings; (See “Manual Revisions OK’d on Reserve Price Formation,” PJM Market Implementation Committee Briefs: Aug. 10, 2022.)
    • Manual 10: Pre-Scheduling Operations, Manual 14D: Generator Operational Requirements and Manual 18: PJM Capacity Market, conform with FERC’s July 12 order accepting PJM’s clarifications on its rules for hybrid resources;
    • Manual 18: PJM Capacity Market and Manual 18B: Energy Efficiency Measurement & Verification, resulting from the periodic review process; and
    • Manual 27: Open Access Transmission Tariff Accounting, Manual 28: Operating Agreement Accounting and Manual 29: Billing, to address reserve price formation implementation.

Endorsements (9:10-10:15)

1. Reserve Price Formation Manual Revisions (9:10-9:30)

PJM staff will review proposed revisions to Manual 11: Energy & Ancillary Services Market Operations to address reserve price formation implementation. The Independent Market Monitor will provide its perspective on the proposed revisions. (See “IMM, PJM to Collaborate on Manual Revisions Prior to MRC,” PJM Market Implementation Committee Briefs: Sept. 7, 2022.)

Issue Tracking: Energy Price Formation

2. Bankruptcy Protections (9:30-9:45)

PJM Assistant General Counsel Eric Scherling will review a proposed package of rule changes addressing bankruptcy protections. The revisions aim to provide greater protections against bankruptcies by market participants. The language was endorsed by the Risk Management Committee in July, and Scherling presented a first read to the MRC in August. (See “Revised Bankruptcy Rules,” PJM Markets and Reliability Committee Briefs: Aug. 24, 2022.)

Issue Tracking: Bankruptcy Protections

3. Market Seller Offer Cap (9:45-10:15)

Stakeholders will be asked to endorse one of two proposed packages of solutions — from PJM and LS Power — and tariff revisions related to changing the market seller offer cap. The PJM language seeks to ensure that market sellers can account for their Capacity Performance risk when offering into the Base Residual Auction. LS Power’s is similar to PJM’s, with differences reflecting sellers’ view of the risk of taking a capacity obligation. (See “Discussions Continue on Market Seller Offer Cap,” PJM Markets and Reliability Committee Briefs: Aug. 24, 2022.)

Issue Tracking: Capacity Reform Market

Members Committee

Consent Agenda (1:15-1:20)

C. Stakeholders will be asked to endorse or approve revisions to Manual 15: Cost Development Guidelines and Operating Agreement Schedule 2 to provide detailed guidance and updates to rules related to variable environmental charges and/or credits and their inclusion in cost-based energy offers. (See “Variable Environmental Costs and Credits,” PJM MIC Briefs: May 11, 2022.)

Issue Tracking: Variable Environmental Costs and Credits

D. The MC will be asked to endorse proposed revisions to Manual 15: Cost Development Guidelines. (See MRC consent agenda item above.)