PJM has created a new emergency procedure and is testing a software fix following poor generator response to a minimum generation event July 5, officials told the OC last week.

PJM dropped a proposal to consider changes to the regulation market after receiving a cool reaction from stakeholders and the Market Monitor.

PJM will increase performance penalties and incentives and seek ways to incorporate firm gas transportation in energy prices under an initiative announced last week to reduce generator outage rates during winter.

Facing a barrage of criticism from spurned Artificial Island bidders, state officials and others, PJM’s Board of Managers has delayed action on a recommendation that it select Public Service Electric & Gas to fix the Artificial Island stability problem. Instead, the board will allow PSE&G and other finalists to “supplement” their proposals in response to LS Power’s offer to cap its project cost at $171 million.

Senators from New York are angry over Cheryl LaFleur’s support for the NYISO’s creation of a capacity zone in the Lower Hudson Valley that has led to increases in prices.

ComEd is teaming with an engineering company to boost the reliability of Chicago’s electrical grid and protect it against terrorism by installing three miles of superconductor cable beneath the city’s Loop district.

FERC tentatively approved a rule to protect the grid against sabotage threats after ordering changes to allow the commission to overrule transmission operators’ definition of “critical” facilities.

A round-up of news from the PJM Operating Committee.

PJM members approved yet another initiative to address reliability concerns over gas-fired generators, agreeing to consider changes to the way such units submit energy and capacity market offers.

PJM capacity prices would increase sharply but reliability would not be threatened if a recent federal court ruling eliminated demand response from wholesale markets, the Market Monitor said.