Markets and Reliability Committee

Manual Revisions Approved

WILMINGTON, Del. — Stakeholders endorsed by acclamation several manual revisions and other operational changes:

• Manual 14A: Generation and Transmission Interconnection Process. Revisions to the manual and the Tariff were developed 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.)
• 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.)
• 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.)
• 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.)
• 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.)
• 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.

Members Committee

Stakeholders Endorse Consent Agenda

Stakeholders endorsed by acclamation the committee’s consent agenda, which included Operating Agreement and Tariff changes:

• 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.)
• Operating Agreement and Tariff revisions creating 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.)
• 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.)

Stakeholders Endorse Third Phase of PJM’s Uplift Solution Despite Opposition

Members strongly endorsed the third phase of PJM’s plan to address uplift, despite opposition from financial stakeholders.

Attorney Ruta Skucas, who represents the Financial Marketers Coalition, reiterated her clients’ opposition to the proposal, which she said will substantially reduce up-to-congestion transactions. The proposal limits increment offers and decrement bids to “locations where the settlement of physical energy occurs,” where they compete directly with physical assets or trading hubs, and where traders can take forward positions. Up-to-congestion transactions would be limited to hubs, zones and interfaces — locations that are large aggregates. (See PJM MRC OKs Uplift Solution over Financial Marketers’ Opposition.)

The proposal was endorsed with 4.16 in favor in a sector-weighted vote, surpassing the 3.335 threshold.

PJM’s Dave Anders explained that the RTO hasn’t filed any of the endorsed uplift proposals yet because the dockets are likely be challenged, which means they will have to wait until FERC has a quorum again. Another consideration is avoiding the period between November and March of next year, when PJM plans to make its filing on five-minute settlements, he said.

“To the extent that we can get something filed with FERC and get approval by FERC before that to allow implementation before November, we would do that,” he said. “If FERC would be not in a position to approve for then, we’d be looking for implementation afterwards.”

The third phase of the solution isn’t impacted by five-minute settlements, so it will likely be filed separately, CFO Suzanne Daugherty explained.

Independent Market Monitor Joe Bowring urged filing as soon as possible. “The fact that there’s no quorum doesn’t mean that they’re not creating a queue, and it’s better to be at the front of the queue than at the back of the queue,” he said.

Members Celebrate Ott’s Birthday

Stakeholders celebrated the birthday of PJM CEO Andy Ott with a personalized cake.

In other news, Anders announced the RTO now has 1,008 members.

— Rory D. Sweeney