The Members Committee approved the following changes by acclimation last week:
System Restoration Strategy
The committee approved updates to the system restoration strategy, including updates to cost allocation.
Reason for Change: The System Restoration Strategy Task Force has been researching ways to ensure sufficient black start capability. Environmental regulations, NERC reliability standards and the increasing cost of black start generation raised reliability concerns.
Impact: Deletes references to transmission owner. Adds conditions for involuntary termination of black start service. Adds reference to performance capabilities in PJM manuals; deletes reference to 90-minute response time. Adds cost allocation provision for black start units designated to serve multiple zones.
Provision of E-Tag Data
The committee approved revisions to the confidentiality provisions of its tariff to comply with FERC Order 771, requiring provision of e-Tag data to Independent System Operators, Market Monitoring Units and FERC. The new language extends confidentiality protections to counterparties that are not PJM members.
Up-To Congestion Transactions – Trading Limits
The committee approved volume limitations for up-to congestion transactions.
Reason for Change: PJM proposed the cap because high bid volumes can make it difficult for the RTO’s day-ahead markets software to reach solutions.
Impact: PJM can limit market participants to no more than 3,000 UTC transactions each in the day-ahead market when necessary for market operations. (A similar cap also applies to increment offers and decrement bids.) The definition of market participant includes all sub-accounts established under the member. Affiliates will be treated as separate participants and have their bids counted individually. The cap includes changes to the tariff, Operating Agreement and Manual 11.
Up-To Congestion Transactions – FTR forfeiture rules
Reason for Change: The rule is intended to prevent market manipulation — in this case, the submission of UTCs that boost the value of a participant’s FTRs.
Impact: The rule is applied when those UTCs result in a higher LMP spread in the day-ahead market than in the real-time market.
PJM Settlement Reconciliations
The committee approved revisions to Schedule 9-PJMSettlement of the Open Access Transmission Tariff to adjust the quarterly rate for the cumulative over or under collection of Schedule 9-PJMSettlement funds.
Reason for Change: Section c of Schedule 9 requires the quarterly 9-PJMSettement rate be adjusted for prior quarter revenues in excess of expenses. The formula does not provide for a reconciliation of prior period balances.
Impact: Section c is revised to adjust the quarterly rate for the cumulative over or under collection of Schedule 9-PJMSettlement funds relative to cumulative costs.