The Year to Date in PJM: Operations and Markets
|
|
- Matthew Ryan
- 5 years ago
- Views:
Transcription
1 The Year to Date in PJM: Operations and Markets Kerry Stroup Manager, State Government Policy PJM Interconnection OMA Energy Committee July 30, 2014 OMA Energy Committee Presentation Outline PJM s mission: maintaining reliability of the bulk power system Bottom line to date: lower wholesale prices Challenges facing the electricity industry PJM Capacity Market outcomes and design changes to assure continued reliability New challenges: USEPA 111(d) rule and Order 745 remand Operational challenges and market outcomes associated with January cold weather Stay tuned for PJM s High Availability Capacity Product proposal 2 1
2 PJM s Role Ensures the reliability of the high-voltage electric power system Coordinates and directs the operation of the region s transmission grid; Administers a competitive wholesale electricity market that sends price signals to supply resources and load consistent with reliable bulk power system operations; Plans regional transmission expansion improvements to maintain grid reliability and relieve congestion. 3 PJM as Part of the Eastern Interconnection 27% of generation in Eastern Interconnection 28% of load in Eastern Interconnection 20% of transmission assets in Eastern Interconnection KEY STATISTICS PJM member companies 900+ millions of people served 61 peak load in megawatts 165,492 MWs of generating capacity 183,604 miles of transmission lines 62, GWh of annual energy 791,089 generation sources 1,376 square miles of territory 243,417 area served 13 states + DC externally facing tie lines % of U.S. GDP produced in PJM As of 4/1/
3 PJM Evolution 5 PJM Focus on Just 3 Things Reliability Grid Operations Supply/Demand Balance Transmission monitoring 1 Regional Planning 15-Year Outlook 2 Markets Energy Capacity Ancillary Services 3 6 3
4 PJM Wholesale Electricity Prices Top Challenges Facing the Industry Electricity Demand World s Largest Fuel Switch Natural Gas Interoperability Integration of Intermittent and Demand Side Resources Man-Made and Natural Disasters Extreme Weather Each Challenge is Also an Opportunity Adapted from: EPRI 8 4
5 Lingering Low Electricity Demand 9 Transitioning from Coal to Gas 2009 to Date: 26,000 MW in Retirement Notices 10 5
6 Renewable Energy in PJM 11 PJM Renewable Integration Study Findings The primary focus of the stakeholder-requested study was to evaluate the effects on reliability of a higher penetration of renewable resources, not the economic competiveness of renewable generation versus other generation. The study s main conclusion is that the PJM system, with adequate transmission expansion (up to $13.7 billion) and additional regulation reserves (up to an additional 1,500 MW), would not have any significant reliability issues operating with up to 30 percent of its energy (as distinct from capacity) provided by wind and solar generation. The estimated electricity production-cost savings from increased renewable resources depend upon the study s assumptions about future fuel prices, load growth and environmental policies. Current low gas prices have made renewable power less competitively priced. Also, there was no attempt to estimate the effect on capacity prices resulting from lower energy prices. (To maintain adequate capacity resources in the face of lower energy prices capacity prices may increase.) 12 6
7 What is RPM? Reliability Pricing Model (RPM) is the PJM resource adequacy construct RPM is part of an integrated approach to ensuring long-term resource adequacy and competitively priced delivered energy RPM aligns the price paid for generation and other capacity resources with overall system reliability requirements RPM provides forward investment signals 13 Highlights of RPM Auction Design PJM invites resource-specific sell offers for planning each year, three years in advance Products that may be offered include: existing and planned generation; planned transmission upgrades; and existing and planned demand resources including energy efficiency New generation, new demand response alternatives, and new transmission solutions can compete directly with existing resources 14 7
8 Capacity Resources Cleared, 2007/8-2017/18 15 Demand Resources in PJM s Capacity Market 16 8
9 RPM BRA Clearing Prices Rest of RTO /2018 Base Residual Auction Clearing Prices ($/MW-Day) 18 9
10 Future Capacity PJM Installed Capacity PJM s Changing Fuel Mix Capacity Cleared Market for 2017/2018 Delivery Year 20 10
11 Gas = 75% New Generation by Fuel Type Since RPM Implementation in ,040 MW Total 21 PJM Capacity Market Reform Clearing of limited DR accepted 1/30/14 Capacity import limit accepted 4/22/14 DR operational flexibility accepted 5/9/14 Replacement capacity filing rejected 5/12/14; PJM request for rehearing filed 6/9/
12 RPM Parameter Triennial Review Brattle review determined VRR not achieving performance objectives at system or LDA level and EAS offset is not accurate, especially for combined cycle technology PJM recommendations are under stakeholder review include: Shift VRR curve right and establish convex shape to better protect against market shocks Adjust CONE values to Sargent/Lundy study estimates; align CONE values more closely with LDAs; maintain CTs as reference to preserve continuity and market stability; adjust certain LDA CONE values to include dual fuel capability and mandate firm transportation only for Cove Point LNG export considerations Calibrate E&AS offset model to reflect actual historical net revenues 23 USEPA Section 111(d) proposed rule and Order 745 Remand have the potential to significantly affect reliability and market outcomes ISO-RTO Council recommendations address reliability and market outcomes PJM has joined Maryland, DC, and other parties in requesting an en banc rehearing of the 6 th District s Order 24 12
13 PJM States System Emission Reduction Standards 25 Similar to the Reliability Safety Valve for MATS IRC Reliability Safety Valve Proposal Keeps generation resources on-line to maintain reliability until a transmission solution can be implemented to ensure retirements do not jeopardize reliability Proposed Reliability Safety Valve for 111(d) has additional features Up front analysis of SIPs to check for possible reliability issues intra-state and inter-state both long-term retirements and short-term operations. On going analysis after implementation as generation resources may retire well after compliance obligations begin depending on flexibility of SIPs in contrast MATS has a hard deadline for emissions rate compliance Ongoing analysis of retirements same as MATS retirement analysis standard deactivation analysis Ongoing analysis of commitment and dispatch operations as this could be impacted depending how states implement 111(d) 26 13
14 Measuring Compliance on a Regional/RTO Basis Provide an option for state-submitted plans to measure compliance on a regional/rto basis Leverages the economies of scope and scale and cost-effectiveness of RTO-wide markets and institutions Cost-effective security constrained economic dispatch across an RTO is already taking place and would make compliance more cost-effective Resource adequacy constructs allow for the cost-effective sharing and transfer of resources across the region Region-wide transmission planning process Market rules already exist in RTO markets to account for the cost of environmental compliance in general 27 DC Court of Appeals Order Vacating FERC Order No /23 Order is directed at FERC, not PJM whose market operations are governed by its filed rates, unchanged by the court order. Court mandate withheld until requests for rehearing by DC Court of Appeals filed and acted upon; status quo until mandate issued. PJM participated in the appeal supporting FERC and Order 745 despite not agreeing with all elements of the final FERC rule, which concerns compensation for economic demand response in daily energy markets. The Court s Order, however, also suggests that demand response is entirely retail-jurisdictional and has no place in wholesale power markets. PJM is disappointed with the Court s jurisdictional analysis that served as the basis for the majority decision. PJM filed a motion for an en banc rehearing by the DC Court of Appeals of the Order on July 7; FERC, Maryland and the District of Columbia had previously filed for an en banc rehearing.. PJM asserted that rehearing en banc is warranted because EPSA presents a question of exceptional importance whether FERC has authority under the Federal Power Act to approve compensation for voluntary demand-side participation in wholesale electric markets
15 January 2014 Low (& Wind Chill) vs Historical Temperatures Unseasonably Cold Weather in January Region Philadelphia Richmond Chicago Week of Jan 6th 4 (1/7) -18 WC 10 (1/7) -8 WC -16 (1/6) -41 WC Week of Jan 20th 4 (1/22) -17 WC 7 (1/23) -2 WC -6 (1/24) -24 WC Week of Jan 27th 10 (1/30) -3 WC 4 (1/30) 4 WC -11 (1/28) -30 WC Avg Jan Low Temp All-Time Record Low -7 (1982 & 84) -16 & -33 WC -12 (1940) WC N/A -27 (1985) -57 WC All temperatures are in Fahrenheit and WC denotes Wind Chill 29 PJM RTO Highest Historical Winter Demands 2014 Demands are Preliminary Telemetered Data Pre-2014 Demands include Coincident Demands of Not-Yet-Integrated Zones 30 15
16 January Forced Outages Compared to History 31 Fuel Types Tuesday, January 7, Peak Generation by Fuel type ICAP (MW) Ambient Air (MW) 01/07/2014 HE 19 Generation Outages (MW) Maintenance / Planned (MW) Forced (MW) Forced Outages (% of ICAP) All Fuel Types 188,106-1,491 40,890 1,104 39,786 21% Gas 48, , ,125 33% Plant Outages 11,819 Gas Curtailments 4,734 Coal 65, , ,564 19% Nuclear 33, , ,605 5% Hydro 8, % Wind 5, , ,398 25% Oil 9, , ,438 47% Other 18, , ,608 20% 32 16
17 Gas/Electric Coordination Issues Raised by Polar Vortex Information sharing and coordination enabled by FERC Order 787 Emergency Waivers: daily communication of generation commitment to gas pipelines and implementation of joint status calls Gas pricing Issues January 22 28: gas unit variable costs exceeded the $1000/MWh offer cap for cost-based offers, resulting in FERC approving PJM s emergency waiver request to waive the offer cap through March 31. A PJM Senior Task Force is considering a change or elimination of offer caps for cost-based and price-based offers in the energy markets,if they are determined to be necessary going forward. Differences in gas and electric market schedules Sufficiency of gas infrastructure: EIPC Stucy 33 Cold Weather Demand Response Date Peak Duration Zones MW 7-Jan Morning 5 ½ Hours RTO 1,720 7-Jan Evening 2 Hours RTO 2,920 8-Jan Morning Cancelled RTO 1, Jan Evening 6 Hours BGE, PEPCO Jan Morning 3 Hours Mid-Atlantic, DOM, APS Jan Evening 4 Hours Mid-Atlantic, DOM, APS 1, Jan Morning 3 Hours Mid-Atlantic, DOM, APS
18 MW Reduction 7/31/ Demand Response in PJM: January 7, 2014 Emergency DR 2000 Economic DR Hour Notes: Emergency DR Amounts are Emergency Energy Settlement Reductions. 35 Day-Ahead LMP vs Real-Time LMP- Jan
19 Gas Price per MMBtu 7/31/2014 Natural Gas Prices January 2014 $120 $100 $80 $60 $40 $20 $- 1/1 1/6 1/11 1/16 1/21 1/26 1/31 Henry Market (East) Market (West) Production 37 Load-Weighted LMP, Monthly 38 19
20 January 2014 Daily Uplift 39 RPM Committed Resources RPM Committed Resources 15.7% Availability 37.3% 40 20
21 Winter Generation Availability Study RPM Committed Resources DR not available in Winter 15.7% 37.3% X% Winter available units Study determines x such that the PJM LOLE is maintained at 1 day in 10 years. 41 New Winter Capacity Minimum RPM Committed Resources Set a new minimum 42 21
22 Generation Performance Problem Statement -- MRC Problem / Opportunity Statement During the extreme cold weather conditions experienced on the PJM system in January of 2014, generator forced outage rates were extremely high. As fully described in the PJM analysis of those January events 1, At the all-time winter peak at 7 p.m. on January 7, PJM experienced a 22 percent forced outage rate, which was far above the historical average of 7 percent, with a total of 40,200 MW unavailable due to forced outages. As further highlighted in the report, the forced outage rate during the winter storms later in January was also more than double what would typically be observed on a winter day. The report also indicates that a portion of these outages were due to unavailability of fuel to natural gas-fired generating units. Recommendation #1 at the conclusion of the PJM report states as follows: Unit Performance PJM, in conjunction with members, should consider the following topics and develop adjustments to improve unit performance: 1. Review the penalties for non-performance during peak days and/or days when emergency procedures are issued for capacity emergencies 2. Review incentives for performance during peak days 3. Investigate a process for unit testing and preparation of resources in advance of winter operations, including testing dual-fuel capability 4. Review generator outage rates outlined in PJM Manual 13: Emergency Operations. Items 3 and 4 from the recommendation are already under consideration in the PJM Operating Committee. The purpose of this problem statement is to initiate stakeholder discussion regarding items 1 and 2 in the recommendation. Issue Source PJM initiated this problem statement based on the recommendation stemming from the analysis of the January cold weather events. 43 High Availability Capacity Product Fuel Security Performance Incentives and Penalties Operational Availability and Flexibility 44 22
PJM briefing. Greater Philadelphia Chapter of the Association of Energy Engineers. PJM Interconnection
PJM briefing Greater Philadelphia Chapter of the Association of Energy Engineers PJM Interconnection Mike Bryson, Executive Director, System Operations Steve Boyle, Director, State Government Affairs January
More informationPJM Wholesale Markets. Hisham Choueiki, Ph.D., P.E. Ohio PUC Staff October 20-24, 2014 Tbilisi, Georgia
PJM Wholesale Markets Hisham Choueiki, Ph.D., P.E. Ohio PUC Staff October 20-24, 2014 Tbilisi, Georgia PJM RTO Functions Grid Operation Non-discriminatory treatment Monitoring transmission system Reliability
More informationAn Introduction to PJM: Focus on its Markets and Opportunities for Demand Resources OHA Annual Energy & Sustainability Conference
An Introduction to PJM: Focus on its Markets and Opportunities for Demand Resources OHA Annual Energy & Sustainability Conference Andrew Ott Sr. Vice President, Markets March 5, 2013 26% of power generation
More informationKey Issues and Consideration in Market Design, Operational and Oversight
Key Issues and Consideration in Market Design, Operational and Oversight Patrick Donlon Amanda Gordon Kathryn Sophy Kenneth Villwock Public Utilities Commission of Ohio & Pennsylvania Public Utilities
More informationPJM s Experience with the RPM Capacity Market
PJM s Experience with the RPM Capacity Market 2013 Austin Electricity Conference Panel 1: Are Capacity Market Necessary to Ensure Adequate Generating Reserve Paul M. Sotkiewicz, Ph.D. Chief Economist PJM
More informationWhat is a Capacity Market?
What is a Capacity Market? Mechanism that ensures sufficient generation to meet reliability and peak load needs. Additional potential benefit of capacity markets is the incentive to build new generation.
More informationCompetitive Markets 1
Competitive Markets 1 Why Regulation? Electric service has historically been considered a monopoly service The provision of electric service traditionally required huge investments in infrastructure Electricity
More informationOverview of PJM: Looking Back to Look Forward Tokyo Power Market Summit
Overview of PJM: Looking Back to Look Forward Tokyo Power Market Summit Craig Glazer Vice President, Federal Government Policy PJM Interconnection June, 2018 Topics 1. PJM Overview 2. Evolution of PJM
More informationCapacity Performance FAQ Response
PJM Interconnection September 15, 2014 This page is intentionally left blank. PJM 2014 www.pjm.com 2 P age Contents FAQ Response Introduction... 4 Capacity Products... 4 Methodology for Establishing Maximum
More informationGreater Philadelphia Chapter of the Association of Energy Engineers
Greater Philadelphia Chapter of the Association of Energy Engineers Stephen Boyle Director, State Gov. Affairs PJM Interconnection January 20, 2016 Key Statistics PJM as Part of the Eastern Interconnection
More informationPJM Organization and Markets. Saudi Delegation Columbus Ohio May 22, 2012
PJM Organization and Markets Saudi Delegation Columbus Ohio May 22, 2012 Agenda Introduction & Governance Energy Markets LMP FTRs/ARRs Two Settlement Virtual Bids Ancillary Capacity - Reliability Pricing
More informationIntegrating Renewables
Integrating Renewables The National RPS Summit Portland, OR October 22, 2010 Timothy C. Burdis Strategist PJM as Part of the Eastern Interconnection 6,038 substations KEY STATISTICS PJM member companies
More informationCompetitive Markets. Facilitated Dialogue: Market Restructuring & Renewable Energy. June 10-12, 2013 Mexico City, Mexico. Hisham Choueiki, Ph.D., P.E.
Competitive Markets Facilitated Dialogue: Market Restructuring & Renewable Energy June 10-12, 2013 Mexico City, Mexico Hisham Choueiki, Ph.D., P.E. Department of Energy and Environment Public Utilities
More informationWorkshop H. PJM Basics: An Introduction to PJM Interconnection and How its Energy and Capacity Markets Operate
Workshop H PJM Basics: An Introduction to PJM Interconnection and How its Energy and Capacity Markets Operate Tuesday, February 19, 2019 1:45 p.m. to 3 p.m. Biographical Information Adam J. Keech, Executive
More informationPJM Analysis of the EPA Clean Power Plan
PJM Analysis of the EPA Clean Power Plan PJM Interconnection October 6, 2016 PJM CPP Study Objectives Evaluate potential impacts to: Resource adequacy Transmission system operations PJM energy and capacity
More informationPJM Capacity Market. October 5, 2011 OPSI Seventh Annual Meeting Andrew L. Ott, Senior Vice President, Market Services
PJM Capacity Market October 5, 2011 OPSI Seventh Annual Meeting Andrew L. Ott, Senior Vice President, Market Services Capacity vs. Energy Capacity A commitment of a resource to provide energy during PJM
More informationOverview. Net Revenue
2009 Quarterly State of the Market Report for PJM: January through June Section 3 Energy Market, Part 2 The Market Monitoring Unit (MMU) analyzed measures of PJM Energy Market structure, participant conduct
More informationCapacity Market. Overview. RPM Capacity Market. Market Design
Section 5 Capacity Capacity Market Each organization serving PJM load must meet its capacity obligations through the PJM Capacity Market, where load serving entities (LSEs) must pay the locational capacity
More informationPJM Renewable Integration Study. Ken Schuyler Renewable Energy in West Virginia June 5, 2014
PJM Renewable Integration Study Ken Schuyler Renewable Energy in West Virginia June 5, 2014 PJM as Part of the Eastern Interconnection 27% of generation in Eastern Interconnection 28% of load in Eastern
More informationThe Evolution of the PJM Market in the United States: Looking Back to Look Forward
The Evolution of the PJM Market in the United States: Looking Back to Look Forward Feasibility Study for ASEAN Multilateral Power Trade September 5-6, 2018 Jakarta, Indonesia Craig Glazer Vice President
More informationThe 2017/2018 RPM Base Residual Auction: Sensitivity Analyses Revised
The 2017/2018 RPM Base Residual Auction: Sensitivity Analyses Revised The Independent Market Monitor for PJM August 26, 2014 Monitoring Analytics 2014 www.monitoringanalytics.com This page intentionally
More informationNew England Electricity Outlook
O C T O B E R 2 1, 2 0 1 6 S O U T H P O R T L A N D, M E New England Electricity Outlook Environmental and Energy Technology Council of Maine (E2Tech) Eric Johnson D I R E C T O R, E X T E R N A L A F
More informationCURRENT FEDERAL AND REGIONAL ELECTRIC POLICY ISSUES FOR THE ILLINOIS COMMERCE COMMISSION
CURRENT FEDERAL AND REGIONAL ELECTRIC POLICY ISSUES FOR THE ILLINOIS COMMERCE COMMISSION Randy Rismiller Manager, Federal Energy Program Illinois Commerce Commission 1 THE FEDERAL ENERGY REGULATORY COMMISSION
More information2013/2014 RPM Base Residual Auction Results
Executive Summary The 2013/2014 Reliability Pricing Model (RPM) Base Residual Auction (BRA) cleared 152,743.3 MW of unforced capacity in the RTO at a Resource Clearing Price of $27.73/MW-day. This MW and
More informationElectricity Supply. Monthly Energy Grid Output by Fuel Type (MWh)
For the first quarter of 2015, Ontario experienced overall demand that was typical for the province in winter, and strong generator output. Demand for Ontario electricity increased as a result of cold
More informationFirstEnergy Solutions Energy Market Update AEE Meeting March 20, John Ogurchak PE/CEM Manager, Commercial/Industrial Energy Sales
FirstEnergy Solutions Energy Market Update AEE Meeting John Ogurchak PE/CEM Manager, Commercial/Industrial Energy Sales FirstEnergy Solutions Corp. (FES) Retail subsidiary of FirstEnergy Corp. and headquartered
More informationThe New Jersey Clean Energy Conference September 26, PJM Overview. Kenneth W. Laughlin VP Markets Coordination PJM
The New Jersey Clean Energy Conference September 26, 2005 PJM Overview Kenneth W. Laughlin VP Markets Coordination PJM 2005 2003 PJM PJM 1 PJM as Part of the Eastern Interconnection KEY STATISTICS PJM
More informationISO New England Regional Electricity Outlook
F E B R U A R Y 7, 2 0 1 7 B E R L I N, C T ISO New England Regional Electricity Outlook Association of Energy Engineers, Connecticut Chapter Stephen J. Rourke V I C E P R E S I D E N T, S Y S T E M P
More informationPJM Wind Integration Initiatives
PJM Wind Integration Initiatives West Virginia Wind Forum Davis, WV September 25, 2012 Ken Schuyler Renewable Services PJM Interconnection 1 26% of generation in Eastern Interconnection 28% of load in
More informationNew England Power Sector Overview
USAID/NARUC East Africa Regional Regulatory Partnership Exchange: New England Power Sector Overview Andrew Greene Massachusetts Dept. of Public Utilities Energy Facilities Siting Board Dar es Salaam, Tanzania
More informationSPP at a Glance. Located in Little Rock. Approximately 600 employees
SPP at a Glance Located in Little Rock Approximately 600 employees Primary jobs electrical engineering, operations, settlements, and IT 24 x 7 operation Full redundancy and backup site 2 Regulatory Environment
More informationGas-Electric Coordination in PJM: Trends, Issues, Interactions, and Looking Ahead
Gas-Electric Coordination in PJM: Trends, Issues, Interactions, and Looking Ahead Harvard Electricity Policy Group 68 th Plenary Session Paul M. Sotkiewicz, Ph.D. Chief Economist PJM Interconnection October
More informationThe Polar Vortex and Future Power System Trends National Coal Council Annual Spring Meeting May 14, 2014
The Polar Vortex and Future Power System Trends National Coal Council -- 2014 Annual Spring Meeting May 14, 2014 Outline Introduction to ICF Overview of the Key Issues Price Volatility During Winter 2014
More informationCapacity Performance Proposal. Summary of Key Design Elements
December 3, 2014 This page is intentionally left blank. PJM 2014 1 P a g e Capacity Product Synopsis PJM Interconnection is proposing a single capacity product called Capacity Performance, similar to the
More informationEPA s Clean Power Plan Proposal Review of PJM Analyses Preliminary Results
EPA s Clean Power Plan Proposal Review of PJM Analyses Preliminary Results Paul Sotkiewicz Chief Economist Muhsin Abdur-Rahman Senior Engineer, Market Simulation Members Committee Webinar November 17,
More informationTransformation of the Electric Grid in New England: Winter Challenges and Price Impacts
NOVEMBER 12, 2014 CROMWELL, CT Transformation of the Electric Grid in New England: Winter Challenges and Price Impacts Connecticut Power and Energy Society Anne George VICE PRESIDENT, EXTERNAL AFFAIRS
More information2017/2018 RPM Base Residual Auction Planning Period Parameters
Introduction The RPM Base Residual Auction (BRA) for the 2017/2018 Delivery Year is scheduled to be conducted in May of 2014. This document describes the 2017/2018 BRA planning period parameters and also
More informationOhio Energy. Workshop O. PJM 201 A Deeper Dive Into the Regional Electricity Market Operated by PJM and How Electricity Prices Are Impacted
Ohio Energy Workshop O PJM 201 A Deeper Dive Into the Regional Electricity Market Operated by PJM and How Electricity Prices Are Impacted Tuesday, February 21, 2017 3:15 p.m. to 4:30 p.m. Biographical
More informationGas-Electric Coordination in PJM
Gas-Electric Coordination in PJM Brian Fitzpatrick Sr. Lead Fuel Supply Analyst PJM Interconnection October 11, 2016 AGA State Affairs Fall Committee Meeting PJM as Part of the Eastern Interconnection
More informationDemand Response Parity in Wholesale Markets Hinges on FERC 745 Outcome
RESEARCH North America Power and Utilities Energy Efficiency Demand Response Parity in Wholesale Markets Hinges on FERC 745 Outcome Supreme Court Review of Order 745 Key to Demand Response s Future in
More informationCapacity Performance Action Items
Capacity Performance Action Items Updated as of September 12, 2014 www.pjm.com Action Items Action Items numbers correspond with details in the Action Item spreadsheet posted on the Enhanced Liaison Committee
More informationWinter 2015 Cold Weather Operations
Winter 2015 Cold Weather Operations Wes Yeomans Vice President - Operations New York Independent System Operator Management Committee March 31, 2015 Rensselaer, NY 2015 New York Independent System Operator,
More informationMonitoring Analytics. Introduction. Operating Parameters. Generation Costs
Introduction Pursuant to Attachment DD, Section 5.10(a)(v)(A, B and C) of the PJM Tariff, PJM provides the net energy and ancillary services revenue offset data for the PJM Region and each LDA or Region
More informationPJM Overview: PJM Structure and Cross-Border Examples PJM 2010
PJM Overview: PJM Structure and Cross-Border Examples 1 PJM as Part of the Eastern Interconnection 6,038 substations KEY STATISTICS PJM member companies 614 millions of people served 51 peak load in megawatts
More informationCSTF Poll Feedback. 02 June 2014
Prioritization and degree of support feedback: CSTF Poll Feedback 02 June 2014 Discuss SWMAAC specific CONE determination issues. May Disagree with PJM/Brattle position once have had opportunity to review
More information2012 Grid of the Future Symposium. Evolution of the US Power Grid and Market Operations through the next Decade
21, rue d Artois, F-75008 PARIS CIGRE US National Committee http : //www.cigre.org 2012 Grid of the Future Symposium Evolution of the US Power Grid and Market Operations through the next Decade A. OTT,
More informationMaintaining Baseload Generation Capacity
Maintaining Baseload Generation Capacity Frank A. Wolak Director, Program on Energy Sustainable Development Professor, Department of Economics Stanford University wolak@stanford.edu http://www.stanford.edu/~wolak
More informationPJM s Clean Power Plan Modeling Reference Model and Sensitivities
PJM s Clean Power Plan Modeling Reference Model and Sensitivities Muhsin K. Abdur-Rahman Senior Market Strategist MC Webinar April 25, 2016 What it is Reference Model Robust modeling representation of
More informationThe Future From One RTO s Window The Institute for Regulatory Policy Studies. Dave Hadley VP, State Regulatory Relations Midwest ISO
The Future From One RTO s Window The Institute for Regulatory Policy Studies Dave Hadley VP, State Regulatory Relations Midwest ISO April 29, 2010 The Midwest ISO s geographic footprint is broad and diverse
More informationUnited States Senate. Committee on Energy and Natural Resources. Testimony of Andrew L. Ott, President & CEO PJM Interconnection, L.L.C.
United States Senate Committee on Energy and Natural Resources Testimony of Andrew L. Ott, President & CEO, L.L.C. Under Certain Weather Conditions January 23, 2018 PJM 2018 www.pjm.com 1 P age As the
More informationQuestions from Chairman Lisa Murkowski
Questions from Chairman Lisa Murkowski Question 1: You sometimes refer to the potential need to take emergency measures during a severe cold weather event, including measures like rolling blackouts, or
More informationNet Revenue. Overview Net Revenue. Conclusion
Section 7 Net Revenue Net Revenue The Market Monitoring Unit (MMU) analyzed measures of PJM energy market structure, participant conduct and market performance. As part of the review of market performance,
More informationSolar Integration into the PJM Grid
Solar Integration into the PJM Grid Ken Schuyler Manager, Renewable Services PJM Interconnection September 14, 2017 Integrating Solar in PJM PJM Background PJM Initiatives to Address Impacts Analysis of
More informationManaging the Rapid Transformation of New England s Energy Resources
NOVEMBER 13, 2015 BOSTON, MA Managing the Rapid Transformation of New England s Energy Resources New England-Canada Business Council Gordon van Welie PRESIDENT AND CEO New England Has Seen Dramatic Changes
More informationDemand Response. Overview. Recommendations
Section 6 Demand Response Demand Response Markets require both a supply side and a demand side to function effectively. The demand side of wholesale electricity markets is underdeveloped. Wholesale power
More informationCapacity Market. Overview RPM Capacity Market. Market Design
Section 4 Capacity Capacity Market Each organization serving PJM load must meet its capacity obligations through the PJM Capacity Market, where load serving entities (LSEs) must pay the locational capacity
More informationFrom Restructuring to Decarbonization: Operational and Market-Design Challenges in New England
SEPTEMBER 25, 2018 WASHINGTON, DC From Restructuring to Decarbonization: Operational and Market-Design Challenges in New England USAEE/IAEE North American Conference Evolving Energy Realities Gordon van
More informationMeeting Natural Gas/Electricity Challenges in New England
N O V E M B E R 1, 2 0 1 3 W A S H I N G T O N, D C Meeting Natural Gas/Electricity Challenges in New England 2013-2014 Winter Energy Outlook Eric Johnson D I R E C T O R, E X T E R N A L A F F A I R S
More informationCalculation of Demand Curve Parameters
Calculation of Demand Curve Parameters Rationale 4.1 Resource adequacy standard 4.1.1 The resource adequacy standard announced by the Government of Alberta prescribes a minimum level of reliability as
More informationEnergy Department Report on Electricity Markets and Reliability
Quick Insights Energy Department Report on Electricity Markets and Reliability RESEARCH QUESTION What are the key findings and recommendations from the Staff Report to the Secretary on Electricity Markets
More informationAmerica s Future Natural Gas Economy: Promoting the Next Energy Breakthrough
America s Future Natural Gas Economy: Promoting the Next Energy Breakthrough Hudson Institute April 6, 2016 Washington, D.C. Michelle Bloodworth Executive Director, External Affairs Introduction / Executive
More informationMaking Sense of U.S. Energy Markets
Making Sense of U.S. Energy Markets Task Force on Energy Supply National Conference of State Legislators Richard McMahon Vice President, Energy Supply and Finance January 14, 2017 Wholesale Markets RTO/ISO
More informationWholesale Electricity Markets. New England Independent System Operator. Commissioner Mark Vannoy Maine Public Utilities Commission
Wholesale Electricity Markets and New England Independent System Operator Commissioner Mark Vannoy Maine Public Utilities Commission March 26, 2014 Overview and Background 2 Wholesale Electricity Markets
More informationJoanne Flynn David Cormie NFAT Technical Conference July 15, 2013
Joanne Flynn David Cormie NFAT Technical Conference July 15, 2013 1 Who is MISO? Midwest Independent Transmission System Operator, Inc. Changing name to the Midcontinent t Independent d tsystem Operator,
More informationEnergy Uplift (Operating Reserves)
Section 4 Energy Uplift Energy Uplift (Operating Reserves) Energy uplift is paid to market participants under specified conditions in order to ensure that resources are not required to operate for the
More informationAnalysis of the 2020/2021 RPM Base Residual Auction
Analysis of the 2020/2021 RPM Base Residual Auction The Independent Market Monitor for PJM November 17, 2017 Monitoring Analytics 2017 www.monitoringanalytics.com Introduction This report, prepared by
More informationTransmission Cost Allocation in the Midwest
Transmission Cost Allocation in the Midwest Randy Rismiller March 9, 2011 There is no single standard for transmission cost allocation in the U.S. The Federal Energy Regulatory Commission has not adopted
More information2011/2012 RPM Base Residual Auction Results
Executive Summary The 2011/12 Reliability Pricing Model (RPM) Base Residual Auction (BRA) cleared 132,221.5 MW of unforced capacity in the RTO at a uniform Resource Clearing Price of $110.00/MW-day. This
More informationWind Power Forecasting Process Development
Wind Power Forecasting Process Development Data Management Working Group (DMWG) Generation and Transmission Valley Forge, PA Thursday, August 20, 2009 Sanjay Patil PJM Interconnection Table of Contents
More informationExpanding Capacity Eligibility
Expanding Capacity Eligibility Zachary T. Smith Manager, Capacity Market Design ICAPWG/MIWG March 7 th, 2019 Agenda Background Installed Capacity Supplier Payment Structure Peak Load Windows Counting MWs
More informationCapacity Performance Training. March 16, 2015
Capacity Performance Training March 16, 2015 Training Objectives Provide Capacity Market Sellers with information necessary to participate in the Reliability Pricing Model (RPM) under a Capacity Performance
More information2018/2019 RPM Base Residual Auction Planning Period Parameters
Introduction The planning parameters for the 2018/2019 RPM Base Residual Auction (BRA) that is to be conducted in May of 2015 were posted on the PJM RPM website on January 30, 2015. Two versions of the
More informationUpcoming CPES Meetings
Upcoming CPES Meetings December 10, 2014: Meet the Regulators January 14, 2015: Legislative Preview February 11, 2015: Connecticut Green Bank with Bryan Garcia March 11, 2015: Connecticut Energy, Environment
More informationFederal Energy Regulatory Commission/RTO Training Session
Federal Energy Regulatory Commission/RTO Training Session Scott H. Strauss Jeffrey A. Schwarz Institute for Policy Integrity NYU Law School June 2011 Agenda FERC -- Who and what is it? History of FERC
More information2008/ 2009 RPM Base Residual Auction Results
Introduction The purpose of this document is to provide additional information for PJM stakeholders regarding the 2008/2009 Reliability Pricing Model (RPM) Base Residual Auction results. The discussion
More informationCalifornia ISO. Q Report on Market Issues and Performance. February 10, Prepared by: Department of Market Monitoring
California Independent System Operator Corporation California ISO Q4 2013 Report on Market Issues and Performance February 10, 2014 Prepared by: Department of Market Monitoring Department of Market Monitoring
More informationPJM Perspective of the EPA Clean Power Plan: Analysis
PJM Perspective of the EPA Clean Power Plan: Analysis Consortium for Energy Policy Research Harvard University March 9, 2015 Cambridge, MA Muhsin K. Abdur-Rahman Senior Market Strategist Paul M. Sotkiewicz,
More informationDOE Staff Report on Electricity Markets and Reliability. Kelly Lefler Office of Energy Policy and Systems Analysis November 15, 2017
DOE Staff Report on Electricity Markets and Reliability Kelly Lefler Office of Energy Policy and November 15, 2017 Secretary Perry requested a grid study in April 2017 The memo asked staff to examine:
More informationDesign Considerations for an Alberta Capacity Market
Design Considerations for an Alberta Capacity Market Monitoring Analytics September 21, 2016 Monitoring Analytics 2016 www.monitoringanalytics.com This page intentionally left blank. Monitoring Analytics
More informationMarkets Report. Jennifer Warner-Freeman Senior Economist, Market Analysis January 22, PJM 2018
Markets Report Jennifer Warner-Freeman Senior Economist, Market Analysis January 22, 2018 www.pjm.com Executive Summary PJM Wholesale Cost for 2017 was $49.64/MWh, up from full-year 2016 costs of $47.49/MWh.
More informationGas-Electric System Needs and Reliability
Gas-Electric System Needs and Reliability Mike Nygaard Engineer, Policy Studies, MISO Geographically, MISO is the largest Independent System Operator in North America Transmission: ~66,000 miles Peak load:
More informationEnergy Market. Highlights
Section 2 Energy Market Energy Market The PJM Energy Market comprises all types of energy transactions, including the sale or purchase of energy in PJM s Day-Ahead and Real-Time Energy Markets, bilateral
More informationModeling, Simulation, and Computational Needs for RTOs: A PJM Perspective
Engineering Conferences International ECI Digital Archives Modeling, Simulation, And Optimization for the 21st Century Electric Power Grid Proceedings Fall 10-22-2012 Modeling, Simulation, and Computational
More informationThe Missouri Public Service Commission
National Association of Regulatory Utility Commissioners Energy Regulatory Partnership Program between The National Agency for Energy Regulation of Moldova and The Missouri Public Service Commission May
More informationNet Revenue. Overview Net Revenue. Conclusion. Historical New Entrant CT and CC Revenue Adequacy
Section 7 Net Revenue Net Revenue The Market Monitoring Unit (MMU) analyzed measures of PJM energy market structure, participant conduct and market performance. As part of the review of market performance,
More informationAnalysis of Potential Impacts of CO 2 Emissions Limits on Electric Power Costs in the ERCOT Region
Analysis of Potential Impacts of CO 2 Emissions Limits on Electric Power Costs in the ERCOT Region May 12, 29 29 Electric Reliability Council of Texas, Inc. Table of Contents Executive Summary... 1 1.
More informationCapacity Performance Training. June 24, 2015
Capacity Performance Training June 24, 2015 Training Objectives Provide Capacity Market Sellers with information necessary to participate in the Reliability Pricing Model (RPM) under a Capacity Performance
More informationPrice Formation. PJM Market Participants February 14, Joe Bowring Catherine Tyler
Price Formation PJM Market Participants February 14, 2019 Joe Bowring Catherine Tyler ISSUES WITH PJM ORDC 2019 www.monitoringanalytics.com 2 PJM ORDC Shape PJM s ORDCs persistently raise prices and procure
More information1st International Conference on Large-Scale Grid Integration of Renewable Energy in India Durgesh Manjure, MISO Energy September 6, 2017
Centralized Energy & Operating Reserves Markets: A MISO perspective 1st International Conference on Large-Scale Grid Integration of Renewable Energy in India Durgesh Manjure, MISO Energy September 6, 2017
More informationPJM Proposal: Reserve Market Enhancements
PJM Proposal: Reserve Market Enhancements Adam Keech Executive Director, Market Operations Markets & Reliability Committee Meeting January 24, 2019 PJM 2019 Comprehensive Reserve Pricing Reform The PJM
More informationAlberta Capacity Market
Alberta Capacity Market Comprehensive Market Design (CMD 1) Design Proposal Document Section 1: Overview of the Alberta Capacity Market Prepared by: Alberta Electric System Operator Date: January 26, 2018
More informationE&AS Offset Proposal Example With all PJM Zones
E&AS Offset Proposal Example With all PJM Zones Paul M. Sotkiewicz, Ph.D CSTF August 19, 2014 PJM Proposal Outline Still requires the need to model historic revenues that will be adjusted for the forward
More informationPennsylvania Public Utility Commission En Banc Hearing. Testimony of Andrew Ott, Senior Vice President
Pennsylvania Public Utility Commission En Banc Hearing Testimony of Andrew Ott, Senior Vice President PJM Interconnection October 23, 2008 Good Afternoon, Chairman Cawley, Vice Chairman Christy and Commissioners
More informationSection 3 Characteristics of Credits Types of units. Economic Noneconomic Generation.
Section 3 Operating Reserve Operating Reserve Day-ahead and real-time operating reserve credits are paid to market participants under specified conditions in order to ensure that resources are not required
More information3.3.1 Cost of New Entry
Section 3: Demand in Reliability Price Model 3.3.1 Cost of New Entry The value for Cost of New Entry (CONE) (in ICAP terms) is determined in accordance with Attachment DD of the Open Access Transmission
More informationSTATE OF THE MARKET REPORT 2005
STATE OF THE MARKET REPORT 2005 MRC Baltimore, MD March 15, 2006 Joseph E. Bowring Market Monitor Figure 4-4 - PJM s evolving footprint and its interfaces 1 PJM Market Monitoring Unit Independent Internal
More informationCurrent Approach to FERC Order on Capacity Markets and Public Policies
Current Approach to FERC Order on Capacity Markets and Public Policies Special MRC August 15, 2018 Other Approaches PJM not pursuing an ISO-NE CASPR-Like approach at this time Too many details to resolve
More informationImpact of Coal Plant Retirements on the U.S. Power Markets PJM Interconnection Case Study
ENERGY VENTURES ANALYSIS JULY 2018 Impact of Coal Plant Retirements on the U.S. Power Markets PJM Interconnection Case Study July 2018 Prepared by: ENERGY VENTURES ANALYSIS 1901 N. Moore Street 703-276-8900
More informationDuring 2009, the PJM geographic footprint encompassed 17 control zones located in Delaware,
SECTION SECTION SECTION SECTION SECTION SECTION VOLUME SECTION 1 2 3 4 5 6 7 8 A B PJM GEOGRAPHY C D E F G Tennessee, Virginia, West Virginia and the District of Columbia. Figure A-1 PJM s footprint and
More informationMarket Settlements - Advanced
Market Settlements - Advanced RPM Module PJM State & Member Training Dept. PJM 2017 Capacity vs. Energy Capacity A commitment of a resource to provide energy during PJM emergency under the capped energy
More information