VALLEY FORGE, Pa. — PJM will use the default economic capacity base load (CBL) to measure the non-summer response of Capacity Performance demand response under manual and Tariff revisions endorsed by the Market Implementation Committee last week.

The method will allow PJM to bypass the more labor-intensive relative root mean square error (RRMSE) test. Extensive analysis has determined that the process would deliver accurate CBLs for most customers, PJM’s Pete Langbein said.

Market Monitor Joe Bowring reiterated his objection to the method.

“We think that the proposed measurement verification for DR for the winter … would permit double-counting, and that’s not appropriate,” he said. “The simple fact that it may be administratively difficult to do [the mean square test] is not a reason not to do it.”

Problem Statement to Define Operating Parameters Approved

Members endorsed a problem statement to develop standardized definitions of operating parameters under Capacity Performance.

PJM proposed the initiative after discovering that market sellers and PJM had different interpretations of various parameters for CP and base capacity resources.

PJM wants to expedite the work of defining the terms before June 1, when the CP rules take effect for delivery year 2016/17.

The definitions are expected to impact Manuals 11, 15 and 28 and include such terms as soak time, start-up time, start-up cost and no-load cost.

Several stakeholders expressed concern over rushing through defining such important terms, and many agreed that the MIC is not the appropriate committee to handle the task.

Market Monitor Joe Bowring took issue with the idea that the work is time-sensitive.

“There is no urgency. The issues, to the extent that any exist, have been around for a long time,” he said.

PJM Provides Update on Line-Loss Refunds

PJM CFO Suzanne Daugherty provided an update on marginal loss surplus allocation billing adjustments, responding to a recent FERC order regarding the seven-year-old issue.

Daugherty said PJM has completed the billing adjustments that were affirmed in FERC’s November order. (See FERC: PJM Entitled to Recoup Line-Loss Credits.)

“Everyone who was owed a recoupment credit got it in full the summer of 2012,” she said. If there is any money left to be refunded, it will only be going to members who paid default allocation assessments that summer, she said.

“There is no more charging related to this topic that I expect to occur,” she said.

— Suzanne Herel