Below is a summary of the issues scheduled to be brought to a vote at the Markets and Reliability and Members committees Thursday. 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 in Wilmington covering the discussions and votes. See next Tuesday’s newsletter for a full report.

Markets and Reliability Committee

2. PJM Manuals (9:10-9:20)

The committee will be asked to endorse manual changes to implement lessons learned from the extreme weather in September and January. The committee also will be presented changes to four manuals that will implement new dispatch rules for demand response pending Federal Energy Regulatory Commission approval (ER14-822).

These include the split of DR into pre-emergency and emergency categories and implementation of 30-, 60- and 120-minute response windows.

Last month, FERC issued a deficiency notice requesting additional information on pre-emergency dispatch of DR and the reduction in the default response time from two hours to 30 minutes. (See FERC Questions May Delay New DR Rules.)

Below are some of the key changes to each manual:

A. Manual 18: PJM Capacity Market — Conforming the manual to recent FERC orders, including seasonal verification testing and Capacity Import Limits effective with the 2017/2018 delivery year.

B. Manual 13: Emergency Operations — The changes will allow declaration of Cold Weather and Hot Weather alerts several days in advance instead of the day before.

C. These revisions will implement demand response “operational enhancements,” which are pending FERC approval:

• Manual 11: Energy & Ancillary Services Market Operations — Specifying Emergency Demand Response price caps based on lead time, as well as an Economic DR price cap.
• Manual 13: Emergency Operations —Implementing demand response rule changes:
  • New categories: Pre-Emergency and Emergency
  • New notification times: 30, 60 and 120 minutes’ notice
  • Sub-zonal dispatch
• Manual 18: PJM Capacity Market — Outlining DR compliance measures and rules, as well as exceptions to the 30-minute lead time requirement.
• Manual 19: Load Forecasting and Analysis — Adding pre-emergency and emergency DR language.
• Manual 28: Operating Agreement Accounting — Clarifying load management accounting procedures.

3. REGIONAL PLANNING PROCESS TASK FORCE (RPPTF) (9:20-9:50)

The committee will vote on Operating Agreement (OA) and Tariff revisions implementing multi-driver transmission projects. The proposed rules developed by the RPPTF would allow multi-driver project combinations as part of the annual Regional Transmission Expansion Plan, both parallel (combining standalone projects) and incremental projects (adding a market efficiency or public policy project “on top” of a reliability project). PJM will apportion the respective value of the combination(s).

PJM’s Transmission Owners will make a Section 205 filing to FERC to propose a cost allocation formula. (See Conflict Ahead for States, TOs over ‘Multi-Driver’?)

4. SETTLEMENT FORMULATION REVIEW – PHASE II (9:50-10:00)

PJM will seek approval of Tariff and OA revisions to clarify the calculation of the deviation between the regulation set point and the expected output of each regulation resource.

5. CREDIT AVAILABLE FOR VIRTUAL TRANSACTIONS (10:00-10:20)

PJM will seek approval of Tariff changes to more accurately reflect current PJM practices regarding credit provided for virtual transactions.

6. CLARIFICATION TO TARIFF AND MANUALS FOR SYNCHRONIZED RESERVE MARKET PENALTY CHARGES (10:20– 10:30)

Stakeholders will be asked to endorse changes to Manual 11: Energy and Ancillary Services Market Operations and Manual 28: Operating Agreement Accounting clarifying that generation owners providing Tier 2 synchronized reserves will be measured in the aggregate when PJM evaluates their performance under a new penalty structure.

(See Rule Changes Clarify Synch Reserve Aggregation.)

7. TRANSITION MECHANISM FOR CAPACITY MARKET CHANGES PROBLEM STATEMENT (10:30-10:45)

PJM will seek approval of a problem statement and issue charge that could result in a generic transition mechanism to hold capacity providers harmless for future rule changes. (See PJM Proposes Generic Transition Rule for Capacity Market Changes.)

8. OFFER CAP REVIEW PROBLEM STATEMENT (10:45-11:00)

PJM will seek approval of a problem statement and issue charge intended to reconsider PJM’s $1,000/MWh energy offer cap. On first read at last month’s MRC meeting, stakeholders representing load said they may oppose a change in the cap. (See Stakeholders Preview Offer-Cap Debate.)

9. GENERATOR DATA PROBLEM STATEMENT (11:00-11:15)

AEP’s Dana Horton will seek MRC approval of a problem statement and issue charge intended to simplify the sharing of real-time generator data. (See PJM Considers Easing Sharing of Real-Time Generator Data.)

10. PJM CHANGE OF ADDRESS (11:15-11:25)

The committee will be asked to endorse changes to the Tariff, OA and Joint Operating Agreements with neighboring regions to reflect the change in PJM’s mailing address, which took effect Jan. 1.

Members Committee

2. CONSENT AGENDA (1:20-1:25)

B. Members will be asked to approve revisions to the Tariff and Operating Agreement to clean up the list of agreements and transactions to which PJM Settlement, Inc. is not a counterparty.

C. The committee will be asked to approve Tariff and OA revisions reflecting changes to eSuite application names. eSchedules and EES will be changed to InSchedule and ExSchedule, respectively.