PJM, IMM pitch competing ORDC packages at MRC
PJM, the IMM and American Municipal Power each offered MRC a package of proposed changes, with PJM and the IMM proposing different shortage-pricing levels for reserves.
PJM, the IMM and American Municipal Power each offered a package of proposed changes.1
The IMM split its own proposal into 3 separate proposals, so that only portions of the full proposal could be implemented, or the full proposal could be implemented in phases.2
PJM's package would make changes to PJM's own Operating Reserve Demand Curves.3
PJM's package introduces a new Ramp and Uncertainty Reserve product and risk-based day-ahead reserve services meant to reflect operational uncertainty and risk.4
PJM's proposed Ramp and Uncertainty Reserve Operating Reserve Demand Curves would be anchored at the point of expected net-load ramp and shift based on that point.5
The IMM recommends that MRC address the practical, operational need for additional reserves caused by solar, wind, and load forecast error in net load.6
The IMM recommends that MRC not adopt market design changes that include intentional increases to shortage pricing levels.7
The IMM says PJM's proposal reinstates PJM's desired downward sloping ORDC curves.8
The IMM's shortage-pricing comparison shows PJM's proposal setting the ORDC highest price for reserves at $2,100 per MW, versus $850 per MW per product and a $1,750 per MW maximum shown under the combined 'IMM Proposal / Status Quo' column.9
PJM's proposal would set the system energy price cap at $4,100 per MWh, compared with $3,700 per MWh under the IMM's proposal.10
Coverage notes
Gridlight’s notes on what we looked for and did not find; these statements are Gridlight’s own and are not claim-checked against archived sources.
- This piece does not say which of the three packages MRC's members will ultimately choose.
- This piece does not resolve whether PJM's higher proposed shortage-pricing and price-cap levels are justified by net-load uncertainty, which the IMM disputes.
- This piece does not detail American Municipal Power's package beyond its inclusion among the three offered to MRC.