PJM Details Remaining Uplift Costs To Be Assigned To Retail Suppliers, LSEs Under Fast-Start Pricing Changes

In a compliance filing at FERC to reflect greater fast-start resource costs in LMP (thereby generally reducing uplift), PJM detailed several instances in which certain costs will be allocated to real-time load (uplift)

Under certain circumstances, PJM will provide make-whole payments for applicable units following dispatch instructions

"Costs for the make whole payments will be allocated to real-time load plus export transactions in a similar manner to how PJM allocates costs for balancing operating reserve credits for reliability, with the only difference being that balancing operating reserve credits for reliability are allocated on a regional basis whereas this make whole payment will be allocated across the entire PJM Region," PJM said in the filing

"[T]o ensure no double recovery of costs, any make whole payments received pursuant to this new provision will be subtracted from the resource’s general balancing operating reserve credit under section 3.2.3(e)," PJM said in the filing

Additionally, applicable generators will receive, under certain circumstances, Dispatch Differential Lost Opportunity Cost credits related to the real-time market.

"PJM will allocate the costs of Dispatch Differential Lost Opportunity Cost credits to real-time load and export transactions in a similar manner to how PJM allocates costs for balancing operating reserve credits for reliability, with the only difference being that balancing operating reserve credits are allocated on a regional basis whereas Dispatch Differential Lost Opportunity Cost credits will be allocated across the entire PJM Region," PJM said in the filing

PJM noted in its filing that, "While PJM proposed in its briefs leading to the April 18 Order to provide resources dispatched down in the day-ahead market lost opportunity cost credits to accommodate fast-start resources, upon review, it is apparent that there is no opportunity for resources to deviate from dispatch in the day-ahead market. As a result, there is no need to provide lost opportunity compensation to ensure resources follow day-ahead commitments and PJM is not including market rules here to provide any."

Docket No. EL18-34 et al.