Implementing sloped Operating Reserve Demand Curves in the PJM Interconnection would raise wholesale power prices under scenarios in a study released Monday by PJM’s independent market monitor, in comparison with PJM’s own analysis. On March 29, PJM filed at the Federal Energy Regulatory Commission a proposed tariff revision incorporating sloped ORDCs, which calculate the value of various types of reserves as supply and demand tighten. In its filing under Section 206 of the Federal Power Act, PJM provided three scenarios for power traded in 2018 to show the proposal’s effect: 1. Case A: Reflects PJM’s current practice of benchmarking market performance against a simulated outcome economically optimizing real-time dispatch at the lowest-cost solution, given constraints, including only committed resources and fast-start resource commitment. 2. Case B: Extends Case A’s economic evaluation to include steam units, typically committed day-ahead, and allows the software to decommit resources previously committed for reliability.
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