PJM, NYISO to coordinate planning processes to facilitate transmission investments

PJM Interconnection (PJM) and the New York ISO (NYISO) said Oct. 17 that their boards have committed to a long-term strategy that includes coordinating planning processes to facilitate efficient transmission investments.

Other elements of the strategy include developing a shared understanding of regional gas delivery constraints for power generation and deploying smart grid technologies that maintain system balance through the use of robust data, communications and automated systems.

A PJM spokesperson told TransmissionHub Oct. 17 that the long-term strategy is not a written document now, rather this is the beginning of a long-term effort that will evolve.

The regional transmission operators (RTOs) also said the agreement is an outgrowth of cooperation between the two to improve transmission congestion management across both markets. PJM and the NYISO said they have been working to reach agreement on flow calculations, modeling approaches and procedures intended to reduce seams congestion, adding that the new market-to-market software and processes will be operational January 2013.

Work is underway for an interregional study that will examine the near- and long-term impacts of natural gas expansion on the RTOs’ systems. The study, PJM and the NYISO added, will look at existing and planned pipeline and generation facilities and identify contingencies on the regional natural gas system that could adversely affect reliability. Furthermore, it will evaluate the adequacy of the regional gas pipeline system to meet electricity system needs, the RTOs said.

A NYISO spokesperson told TransmissionHub Oct. 17 that achieving a broader regional strategy will require a commitment among RTOs to optimize the economic flow of electricity across borders; coordinate planning processes that facilitate transmission investments in support of reliability, economic efficiency and public policy activities; deploy smart grid technologies that maintain system balance through the use of robust data, communications, and automated systems; and develop a shared understanding of regional gas delivery constraints for power generation as well as a commitment to address them collaboratively.

He also noted that an effective broader regional strategy will enhance reliability and expand the benefits of competitive markets in local markets, while preserving the local market governance structures.

PJM Board Chairman Howard Schneider said in the Oct. 17 statement announcing the cooperative effort that the market coordination steps being taken will be the first of many intended to bolster the reliability and economic efficiency of both systems.

NYISO Board Chairman Bob Hiney said in the statement, “Implementing market solutions to optimize the use of existing resources before investing in new infrastructure is a significant value competitive markets provide.”

About Corina Rivera-Linares 3058 Articles
Corina Rivera-Linares, chief editor for TransmissionHub, has covered the U.S. power industry for the past 15 years. Before joining TransmissionHub, Corina covered renewable energy and environmental issues, as well as transmission, generation, regulation, legislation and ISO/RTO matters at SNL Financial. She has also covered such topics as health, politics, and education for weekly newspapers and national magazines. She can be reached at clinares@endeavorb2b.com.