Members Prepped for Problem Statement on Settlement Intervals, Shortage Pricing

WILMINGTON, Del. — The PJM Markets and Reliability Committee will be asked to approve a problem statement on first read next month regarding rule changes to comply with FERC Order 825, which requires RTOs to align their settlement and dispatch intervals and implement shortage pricing during any shortage period.

PJM has until Jan. 17 to file its compliance with the June 16 order, PJM’s Adam Keech said. After that, the RTO has four months to implement shortage pricing provisions and 12 months for settlement provisions.

While FERC did not order the changes be implemented simultaneously, members may consider requesting coincident start dates because the issues are related, he said. (See FERC Issues 1st RTO Price Formation Reforms.)

Charter for Underperformance Risk Management Senior Task Force Presented

Members heard the first reading of a draft charter for the Underperformance Risk Management Senior Task Force. The committee will be asked for its approval at the July meeting.

The charter reflects two separate issue charges. The first, managing the risk of underperformance under Capacity Performance, was approved in December. (See “Ways to Mitigate Risk in CP Market to be Studied,” PJM Markets and Reliability Committee Briefs.) The task force will seek to develop ways that CP resources can manage their risk during performance assessment hours.

The second, concerning external CP enhancements, passed in May. (See MRC Approves Charter for Seasonal Capacity Effort.) The group will seek to better align the requirements for internal and external resources.

PJM’s Rebecca Carroll said the task force is looking to implement changes for the 2020/21 Base Residual Auction next May. The task force expects to return to the MRC with recommendations by September.

On a related issue, CEO Andy Ott urged the Seasonal Capacity Resource Senior Task Force to be realistic about changes to allow seasonal resources to participate in CP. In particular, he discouraged them from moving to a seasonal product from an annual one.

“We need to work on aggregation, work on verification standards,” he said. “But to try to completely revamp the definitions would distract from the goal of trying to make change that is attainable,” he said.

More Flexible PLS Process Approved

The MRC approved a proposal to make the parameter-limited schedule exception process more flexible.

With the change, generators can request exceptions after the Feb. 28 deadline. They also will be permitted to seek extensions of a temporary exception (to a period or persistent exception) after that date.

It also gives PJM and the Independent Market Monitor more time to review requests and respond to market sellers. (See “More Flexible Parameter Limited Exception Process Approved,” PJM Market Implementation Committee Briefs.)

PJM Delays Endorsement of Manual Changes

PJM delayed an endorsement vote on two manual changes in response to members who wanted more time to discuss the issues.

Regarding Manual 14C: Generation and Transmission Interconnection Facility Construction, the tie line issue will be lifted out and returned to the Planning Committee for discussion, PJM’s Jason Shoemaker said. The changes were sought to support the inclusion of Order 1000 processes.

As for proposed revisions to Manual 15: Cost Development Guidelines, PJM delayed asking for endorsement to give members more time to discuss aspects related to the fuel cost policy approval process. The issue is expected to return to the Market Implementation Committee next month before being presented again to the MRC.

Manual Changes

Members unanimously endorsed the following manual changes:

• Manual 7: Protection Standards. Clarifications were recommended by the Relay Subcommittee as part of its biennial review of the manual.
• Manual 10: Pre-Scheduling Operations. Changes make clear that outage reporting rules apply to both capacity and energy resources.
• Manual 11: Energy & Ancillary Services Market Operations. Conforming changes align with Manual 12: Balancing Operations (rev. 34), adding attachment F.
• Manual 14B: PJM Region Transmission Planning Process. Critical Energy Infrastructure Information section of the introduction is replaced.
• Manual 14B: PJM Region Transmission Planning Process. Updates light load and winter peak reliability analyses to align with current practices, among other updates.
• Manual 18: PJM Capacity Market. Changes are the result of a periodic review; conforming changes relate to Capacity Performance and the “deploy all resources” action.
• Manual 28: Operating Agreement Accounting. New details, clarifications are the result of a periodic review.

Members Committee

Members Committee Adopts Project Queue Submittal Changes, Elects Finance Committee Member

The Members Committee approved Tariff revisions requiring earlier submittal of documentation in order for projects to secure a place in the interconnection queue.

Applications that have not cleared deficiencies by the close of the queue window will be terminated and withdrawn.

The committee also elected Gary Greiner of Public Service Enterprise Group to the Finance Committee. He will take the place of Frank Czigler, who retired from PSEG.

— Suzanne Herel