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 Aug. 21. 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 cover the discussions and votes. See the website and next week’s newsletter for a full report. 

Markets and Reliability Committee

Endorsements (9:10-11:30)

1. Enhanced Know Your Customer (9:10-9:30)

PJM’s Anita Patel and Eric Scherling will present a proposal to tighten PJM’s know your customer (KYC) rules, which require members to provide information to facilitate the due diligence PJM conducts on key decision-making leadership. The tariff changes would require nonpublicly traded members to provide the names of beneficial owners, board of director members and principals. PJM then would conduct background checks on them. The committee deferred voting on the language during the July MRC meeting to review changes to the definitions of principal and beneficial owners added to the language after its first read. (See “Vote on Enhanced Know Your Customer Deferred,” PJM MRC Briefs: July 24, 2024.) 

The committee will be asked to endorse the proposed solution and tariff revisions. 

Issue Tracking: Enhanced Know Your Customer 

2. Re-evaluation of Financial Parameters Used in CONE for 2027/28 BRA (9:30-9:50)

PJM’s Skyler Marzewski will present a proposal to recalculate the after-tax weighted average cost of capital (ATWACC) and bonus depreciation values for the 2027/28 Base Residual Auction (BRA). Both of the values are used in the calculation of the cost of new entry (CONE) and have been the topic of discussion as some stakeholders argue that changing market conditions, interest rates in particular, have substantially changed the financing of new generation. (See “PJM Proposes Increased CONE Parameters,” PJM MRC Briefs: July 24, 2024.) 

The committee will be asked to endorse the proposed solution and corresponding revisions to the tariff and Manual 18. Same-day endorsement may be sought at the MC. 

Issue Tracking: Financial Assumptions Used to Calculate Gross CONE 

3. Automating Bid Duration for Economic DR Participating in Energy Markets (9:50-10:10)

PJM’s Pete Langbein is set to present a proposal to create two new energy market parameters for demand response (DR) resources: a minimum down time and minimum release time.  

The committee will be asked to endorse the proposed solution and corresponding Manual 11 revisions. 

Issue Tracking: Automating Bid Duration for Economic Demand Response Participating in Energy Markets 

4. Evaluation of Energy Efficiency Resources (10:10-11:30)

Langbein will present a proposal to revise how PJM measures and verifies the capacity offered by energy efficiency (EE) resources. The changes would require EE providers to demonstrate a causal link between capacity market revenues and the viability of their projects, obtain exclusive rights to offer energy savings associated with a project as capacity and reduce the period for which installations can be offered as capacity from four years to one. (See Stakeholders Endorse PJM EE Measurement and Verification Proposal.) 

The committee will be asked to endorse the proposed solution. Same-day endorsement may be sought at the Members Committee. 

Issue Tracking: Evaluation of Energy Efficiency Resources 

Members Committee

Consent Agenda (4:05-4:10)

B. Endorse proposed tariff and Operating Agreement (OA) revisions addressing the performance impact of the multi-schedule model on the Market Clearing Engine. The proposal would use a formula to select one schedule for each generator to be modeled in the real-time market in an effort to prevent multi-schedule modeling from leading to an untenable increase in MCE computation times. (See “Schedule Selection Formula Endorsed,” PJM MRC Briefs: July 24, 2024.)

Issue Tracking: Performance Impact of multi-schedule model in Market Clearing Engine (MCE) in nGEM Enhanced Combined Cycle (ECC) and Energy Storage Resource (ESR) models

C. Endorse proposed tariff and OA revisions intended to resolve delays in how reserve resources are deployed. The changes would transmit deployment instructions through resources’ basepoints, in addition to the existing automatic spin event and all-call notifications, as well as empowering operators to dispatch reserves at a percentage of their maximum commitment. (See “Stakeholders Endorse Reserve Rework, Reject Procurement Flexibility,” PJM MRC Briefs: July 24, 2024.)

Endorsements (4:10-4:40)

1. Enhanced Know Your Customer (KYC) (4:10-4:20)

Patel and Scherling will review the proposed KYC tariff revisions. 

The committee will be asked to endorse the proposed solution and corresponding tariff revisions. 

2. Re-evaluation of Financial Parameters Used in CONE for 2027/28 BRA (4:20-4:30)

Marzewski will review the proposed changes to the financial parameters underlying the gross CONE value in the most recent quadrennial review. 

The committee will be asked to endorse the proposed solution and corresponding tariff revisions. 

3. Evaluation of Energy Efficiency Resources (4:30-4:40)

Langbein will review the proposed changes to energy efficiency measurement and verification. 

The committee will be asked to endorse the proposed solution and corresponding governing document revisions.