PJM is proposing a MISO scheduling product similar to the PJM-NYISO Coordinated Transaction Scheduling solution that gained conditional FERC approval in February.

At last month’s Joint and Common Market meeting, PJM presented an overview of the PJM-NYISO CTS, along with a proposed work plan for developing a similar product with MISO. Joint MISO-PJM stakeholder meetings are scheduled for April 28 at MISO and June 10 at PJM.

The meetings will be devoted to “setting up what the proposal will look like,” said PJM’s Rebecca Carroll, who provided the Market Implementation Committee with an update last week.

“We are trying to keep it as similar [to the NYISO product] as we can,” she said. “We would like the products to be complementary.”

PJM and NYISO hope CTS, due to begin as soon as November, will reduce uneconomic flows between the two regions. (See PJM Price Forecasts: Close Enough for Power Trading?)

PJM and MISO had discussed optimization in 2011 and 2012 but tabled the matter to pursue higher priorities. “The JCM has been up for one and a half years now. We thought it was time to take up this issue again,” Carroll said.

MISO Has Second Thoughts on Interface Pricing

The two regions are no closer to a solution, however, on eliminating the double counting of congestion in interface prices.

PJM wants MISO to agree on a common definition of the PJM-MISO interface to eliminate double counting that can inflate congestion calculations in market-to-market transactions. Transactions overestimate congestion when they settle with both RTOs because both are pricing its full effect on the constraint.

In February, PJM said it had concluded that its definition puts the interface too far west of the congestion. It proposed a revised definition comprised of 10 generator pnodes closer to the RTOs’ seam. MISO’s Market Monitor suggested an alternative that would eliminate the double payment by basing the settlement entirely on the monitoring RTO’s shadow price. (See PJM, MISO Seek Common Ground on Congestion Values.)

According to MISO’s presentation at the March 21 JCM meeting, MISO stakeholders found none of the proposals was “obviously superior” to the current definition and concluded it may be impossible to develop a methodology that provides more accurate signals in all situations.

MISO said it will continue to evaluate alternatives in the search for one that works better in most cases.

For now, however, Carroll said PJM and MISO will retain their current definitions.

Carroll said it appears the proposed changes stalled due to concern within MISO about the impact on Financial Transmission Rights.