PJM Reports 11-Fold Increase In Uplift During Recent Cold Snap ($47 Million Spike)
12% Of Capacity Still Underwent Forced Outage
February 26, 2018 Email This Story Copyright 2010-17 EnergyChoiceMatters.com
Reporting by Paul Ring • email@example.com
In a report on grid performance during a recent cold snap in January 2018, PJM said that there was an 11-fold increase in uplift charges during the cold snap period (Dec. 28, 2017 to Jan. 7, 2018).
"One telling data point from the experience of the cold snap was the significant increase in uplift charges. Over the last several years, uplift charges have been relatively low in PJM, averaging approximately $389,000 per day. By contrast, during the peak days of the cold snap, uplift charges averaged approximately $4.3 million per day," PJM reported
Total uplift for the peak days during the period was $47 million
For all of the months of December 2017 and January 2018, total uplift exceeded $70 million; uplift for the period December 2016 to January 2017 had been just above $20 million.
PJM said that such uplift shows the need for pricing, "reforms."
"This problem, clearly evidenced by the cold weather experience, highlights the need for PJM and its stakeholders to evaluate reforms to address this issue in a timely manner. These reforms include enhancing the manner in which reserves are procured and priced so that all operator actions are included in price signals and enhancements to the calculation of locational marginal pricing," PJM said
While forced outages during the recent cold snap were better than the 2014 polar vortex, PJM reported that forced outages were 23,751 MW during the recent cold snap, or 12% of installed capacity. During the 2014 polar vortex, forced outages were 40,000 MW, or 22% of installed capacity