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 July 24. 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 covering the discussions and votes. See next week’s newsletter for a full report.
Markets and Reliability Committee
Consent Agenda (9:05-9:10)
B. Endorse proposed conforming revisions to Manual 12: Balancing Operations to implement provisions of a package to establish fuel assuredness requirements for black start resources approved by stakeholders last year. The changes would add two exemptions from penalties for fuel-assured black start resources that fall below their minimum fuel inventory due to capacity calls or storage inspections, as well as reworking the verification process. The revisions being voted on July 24 were inadvertently left out of the language approved last year despite being included in the approved package matrix. (See “Stakeholders Endorse Revisions to Manual 12 for Black Start Fuel Requirements,” PJM OC Briefs: July 11, 2024.)
Issue Tracking: Fuel Requirements for Black Start Resources
C. Endorse proposed revisions to Manual 13: Emergency Operations drafted through the document’s periodic review. The changes clarify communication processes between RTO control rooms, adding language that local load shed directives do not initiate a performance assessment interval (PAI), and remove member actions stating that gas generation owners should notify PJM of whether they have or plan to procure fuel to meet day ahead reserve commitments.
Endorsements (9:10-10:50)
1. Enhanced Know Your Customer (9:10-9:30)
PJM’s Anita Patel and Eric Scherling will present more stringent “know your customer” requirements that would require some members to provide more information about key decisions makers, owners and beneficiaries. The proposal was endorsed by the Risk Management Committee on May 21. (See “First Read on Expanded ‘Know Your Customer’ Rules,” PJM MRC/MC Briefs: June 27, 2024.)
The committee will be asked to endorse the proposed solution and corresponding tariff revisions.
Issue Tracking: Enhanced Know Your Customer (KYC)
2. Performance Impact of the Multi-Schedule Model in the Market Clearing Engine (9:30-9:50)
Constellation Energy’s Adrien Ford is set to make a motion for the committee to endorse a joint PJM/GT Power Group proposal to establish a formula to select one offer into the energy market for each resource to be forwarded to the Market Clearing Engine (MCE). The proposal is intended to facilitate PJM’s goal of implementing multi-schedule modeling without causing a significant increase in MCE computation times. The proposal to be voted on July 24 was turned down by the MRC in December when the committee endorsed a different PJM proposal, which ultimately was rejected by FERC. (See “Stakeholders Discuss Path Forward on Multi-Schedule Modeling,” PJM MIC Briefs: June 5, 2024.)
The committee will be asked to endorse the proposed solution and corresponding revisions to the tariff and Operating Agreement.
3. Reserve Certainty (9:50-10:10)
PJM’s Emily Barrett will present two proposals to rework how PJM determines its reserve procurement targets and how those resources are deployed. The first would replace the static 3,000-MW 30-minute reserve requirement with a formula that takes load forecasting, forced outage rates, the largest active gas contingency and the primary reserve requirement into account. It also would permit PJM to increase the 30-minute, synchronized or primary reserve requirements independently of the other two. The second proposal would send reserve deployment instructions through resources’ basepoints as the primary notification that they are being called on to provide reserves. (See “First Read on 2 PJM Proposals to Revise Reserve Markets,” PJM MRC/MC Briefs: June 27, 2024.)
The committee will be asked to endorse the proposed solutions and corresponding tariff, Operating Agreement and manual revisions.
Issue Tracking: Reserve Certainty and Resource Flexibility Incentives
4. Enhancements to Deactivation Rules (10:10-10:30)
Philip Sussler, of the Maryland Office of People’s Counsel, and Clara Summers, of the Illinois Citizens Utility Board, will present amendments to the Deactivation Enhancements Senior Task Force (DESTF) issue charge to expand its scope to include proposals that create more cost-effective alternatives to reliability-must-run (RMR) contracts, which are offered to generators whose requested deactivation would prompt transmission violations. The widened scope also includes education about alternative transmission technologies that could allow violations to be resolved faster and processes in use by other grid operators. (See “Consumer Advocates Seek Wider Scope for Deactivation Task Force,” PJM MRC/MC Briefs: June 27, 2024.)
The committee will be asked to approve the amended issue charge.
Issue Charge: Enhancements to Deactivation Rules
5. Review and Endorsement of IRM and FPR Results for 2026/27 Delivery Year (10:30-10:50)
PJM’s Josh Bruno will present revised installed reserve margin (IRM) and forecast pool requirement (FPR) values for the 2026/27 delivery year to reflect market design changes made since the 2023 Reserve Requirement Study (RRS) was completed. Drafted through the Critical Issue Fast Path (CIFP) process last year, the market changes include accrediting nearly all resources through a marginal effective load carrying capability (ELCC) approach and alterations to the IRM and FPR formulas.
The committee will be asked to endorse the IRM and FPR results upon first read at this meeting. Same day endorsement may be sought at the Members Committee. (See “Stakeholders Endorse Revised RRS Values,” PJM PC/TEAC Briefs: Feb. 6, 2024.)
Members Committee
Endorsements (2:40-3:00)
Bruno will present revised installed reserve margin (IRM) and forecast pool requirement (FPR) values for the 2026/27 delivery year.
The committee will be asked to endorse the new figures upon first read.
