Concerns from FERC/NERC & PJM Experience
Concerns from FERC/NERC & PJM Experience
Any opinions voiced in the articles linked below are those of the article authors only, and not necessarily endorsed by Competitive Assets
- Sept. 27, 2013
FERC Held a Technical Conference on Capacity Market
Copyright 2013 by Competitive Assets, LLC. All rights reserved
On 9/25/13, FERC held a technical conference on capacity markets; specifically, “to consider how current centralized capacity market rules and structures are supporting the procurement and retention of resources necessary to meet future reliability and operational needs.” A free live webcast was available for this meeting, and the webcasts remain archived for three months.
- Sept. 25, 2013: In Letter on Capacity Market, House Republicans Urge FERC to Ensure Wholesale Markets Don’t Become “Mere Administrative Constructs” Dependent on Increasing Inputs from Regulators
- June 17, 2013: FERC Staff to Convene Technical Conference on Centralized Capacity Markets in RTOs/ISOs on September 25, 2013
- June 12, 2013: Feds: Texans at Greatest Risk for Summer Power Problems
- May 16, 2013: N. America Has Enough Summer Power, but Texas Problem Possible
- May 15, 2013: NERC Raises Concerns over Falling Power Reserve Margins in Texas
- May 1, 2013: ERCOT CEO Responds to NERC: Future Outlook is Improving On 1/7/13, the NERC CEO Gerry Cauley sent a letter to Trip Doggett, the CEO of ERCOT, relating NERC Board of Trustees’ concerns about the declining reserve margin in ERCOT. He asked that ERCOT consider additional measures to improve resource adequacy and report to NERC by 4/30/13, on proposed solutions. Consequently, on 4/30/13, Trip Doggett replied to Gerry Cauley in a letter, acknowledging the possibility of a lower reserve margin, and listing the steps ERCOT and the PUCT are working on now to address the potential problem. He states that the 5/1/13 Capacity, Demand, and Reserves (CDR) Report will show a reserve margin for 2014 higher than the target and also improved future outlook. In addition, he suggests regular updates every six months and provides a specific and lengthy list of all measures taken in the past two years to increase resource adequacy.
- April 10, 2013: U.S. Grid Agency Monitors Texas Effort to Boost Power Reserve
PJM Experience
- Jan 30, 2014: Retail Supplier Opposes Waiver to Allow PJM Offers Above $1,000/MWh To Set LMP, Says Capacity Suppliers Should “Honor Their Commitments”
- Jan 30, 2014: Industrials, Consumer Advocates Say Load Shouldn’t Be Forced to Cover Generators’ “Poor Decision-Making” In Not Hedging Gas Risk, In Opposing Waiver of PJM $1,000/MWh Offer Cap
- Jan 30, 2014: FERC Approves Change in PJM Capacity Market Seen as Increasing Costs $1.8 Billion Over Two Years
- Jan 28, 2014: Texas Capacity Market Supporter Asks FERC to “Permanently Eliminate” $1,000/MWh Price Cap in New York
- Jan 28, 2014: Power Marketer Slams PJM’s “Objectionable” Request to Lift $1,000/MWh Price Cap “On The Fly”
- Jan 27, 2014: PJM Seeks to Allow LMPs to Exceed $1,000/MWh Cap; May Be Easily Gamed
- Jan 22, 2014: New York ESCOs Asked to Pay Generators in Excess of $1,000/MWh As NYISO Seeks FERC OK to Lift Bid Cap; Despite Capacity Market, NYISO Says Bid Cap Waiver Needed to Ensure “Reliable Operations”
- Jan 22, 2014: Owner of 13,000 MW of Merchant Generation: PJM’s Capacity Auctions Don’t Provide Adequate Support for Competitive Generators
- Jan 15, 2014: Report: Percent of PJM Forced Outages During Cold Snap Grid Stress Four Times That of ERCOT
- Jan 8, 2014: Excessive Capacity Market Costs To PJM Customers From Load Forecasting Errors Alone Equal $5 Billion In Single Year, $25 Billion Since 2008/09
- Jan 6, 2014: Capacity-Market Dependent PJM Issues “Third World” Plea for Electric Conservation
Posted by CompetitiveAssets on October 3rd, 2013