NYISO, PJM file supplemental revisions to joint operating agreement

The New York Independent System Operator (NYISO) and PJM Interconnection (PJM) on May 1 filed with FERC supplemental revisions to their joint operating agreement (JOA) addressing five issues that the RTOs had requested additional time to resolve.

Those issues include the method of calculating market-to-market coordination process (M2M) entitlements; the modeling of external capacity resources for purposes of developing M2M entitlements; and determining how to reflect PJM’s service to its Rockland Electric Company load in the M2M market flow and M2M entitlements processes.

M2M entitlements are the equivalent of financial rights that will be granted to PJM and NYISO to use each other’s transmission system within the confines of the M2M process, the RTOs said, adding that a crucial element of M2M is developing an equitable set of entitlements for PJM and NYISO.

When M2M redispatch is activated, the agreed upon level of M2M entitlements is used as a baseline to provide compensation to either PJM or NYISO, depending on how the actual level of each others’ market flows compares to the level of M2M entitlements.

The RTOs also said they have agreed to several changes to a schedule to their JOA to improve the methods that the RTOs will use to calculate M2M entitlements and to ensure that M2M will produce equitable results.

With regards to concerns related to modeling of external capacity resources, the RTOs noted that in a March order, FERC required them to submit all remaining tariff revisions necessary to implement the M2M process, including revisions pertaining to the modeling of external capacity resources for purposes of developing M2M entitlements.

The RTOs said they propose to revise a schedule to allow either party to include external capacity resources in the model used for M2M entitlement calculations to the extent the RTOs mutually agree to their inclusion.

For the initial implementation of the M2M coordination process, PJM will include its external capacity resources in the model used to calculate the M2M entitlements, while NYISO will not include its external capacity resources.

The RTOs also said they have agreed that 80% of PJM service to Rockland Electric load is to “be excluded from the calculation of M2M market flows and M2M entitlements and [is to] instead be reflected as a PJM obligation over the Ramapo PARs.”

The remaining 20% of Rockland Electric load is to “be included in the M2M entitlement and market flow calculations as PJM load.”

“Ramapo PARs” are used, for instance, to facilitate scheduled interchange transfers between PJM and NYISO.

The RTOs filed revisions to their JOA with FERC in December 2011. At the time, NYISO also proposed revisions to its market administration and control area services tariff to remove a congestion management pilot program that will be superseded when the M2M takes effect.

The fundamental philosophy behind the M2M transmission congestion coordination process that is set forth in the RTOs’ proposed JOA revisions is to allow transmission constraints that are significantly affected by generation dispatch changes in the NYISO and PJM markets or by the operation of the “Ramapo” phase angle regulators (PARs) to be jointly managed in the real-time security-constrained economic dispatch models of both RTOs, the RTOs said in their December 2011 filing.

M2M focuses on real-time market coordination to manage transmission limitations that take place on designated M2M flowgates in a more cost-effective manner. Coordination between the RTOs will include joint redispatch and will incorporate coordinated operation of the Ramapo PARs that are located at the NYISO-PJM interface.

The RTOs said in their May 1 filing that proposed revisions to the body of the JOA include adding new/supplemental definitions, such as “external capacity resource,” which means for NYISO, for instance, a set of resources owned or controlled by an entity within a control area, and for PJM, means a generation resource located outside the metered boundaries of the PJM region that meets the definition of capacity resource in the PJM tariff or governing agreements filed with FERC.

Also, “new year market flow” means the market flow incorporating the transmission topology that includes all pre-existing transmission facilities and all new or upgraded transmission facilities whose impact on M2M entitlements has been previously evaluated and incorporated, and all new or upgraded transmission facilities whose impact on M2M entitlements is being evaluated in the current evaluation step.

Among other things, the RTOs said they request a flexible effective date for the JOA and other tariff revisions that would require implementation no later than Jan. 15, 2013. They also said they now request a time extension to allow them to implement M2M on Jan. 15, 2013, noting that given the complexity of the M2M project and the scope of the software enhancements required, they believe the 15-day extension is reasonable.

About Corina Rivera-Linares 3286 Articles
Corina Rivera-Linares was TransmissionHub’s chief editor until August 2021, as well as part of the team that established TransmissionHub in 2011. Before joining TransmissionHub, Corina covered renewable energy and environmental issues, as well as transmission, generation, regulation, legislation and ISO/RTO matters at SNL Financial from 2005 to 2011. She has also covered such topics as health, politics, and education for weekly newspapers and national magazines.