Energy & Ancillary Services Market Operations Revision

191 Pages·2017·3.91 MB·English

PJM Manual 11:
Energy & Ancillary Services Market Operations
Revision: 121122
Effective Date: July 7, 2022October 1, 2022
Prepared by
Day-Ahead and Real-Time Market Operations
PJM © 2022
PJM Manual 11: Energy & Ancillary Services Market Operations
Table of Contents
Table of Contents
Approval....................................................................................................10
Current Revision.......................................................................................11
Introduction...............................................................................................13
About PJM Manuals...........................................................................................................13
About This Manual.............................................................................................................13
Using This Manual.............................................................................................................14
Section 1: Overview of Energy & Ancillary Services Market
Operations.............................................................................................15
1.1 PJM Responsibilities....................................................................................................16
1.2 PJM Market Participants Responsibilities....................................................................17
1.2.1 Market Buyers.................................................................................................17
1.2.2 Market Sellers.................................................................................................18
1.2.3 Load Serving Entities......................................................................................18
1.2.4 Curtailment Service Providers........................................................................19
Section 2: Overview of the PJM Energy Markets...................................20
2.1 Overview of PJM Energy Markets...............................................................................21
2.1.1 Fast-Start Capable Resources........................................................................21
2.1.2 Fast-Start Capable Adjustment Process.........................................................21
2.1.3 Eligible Fast-Start Resources.........................................................................22
2.1.4 Day-ahead Energy Market..............................................................................22
2.1.5 Real-time Energy Market................................................................................23
2.2 Definition of Locational Marginal Price........................................................................24
2.3 Energy Market Business Rules....................................................................................25
2.3.1 Bidding & Operations Time Line.....................................................................25
2.3.2 Market Buyers.................................................................................................26
2.3.2.1 Fixed and Price Sensitive Demand Bid Business Rules....................26
2.3.2.2 Increment and Decrement (Virtual) Bid Business Rules....................27
2.3.2.3 Up-to Congestion Transaction Business Rules..................................28
2.3.2.4 Electric Distribution Company (EDC) Activities..................................28
2.3.3 Market Sellers.................................................................................................28
2.3.3.1 Capacity Resource Offer Rules:.........................................................30
2.3.3.2 Generator Schedules.........................................................................31
2.3.3.3 Aggregated Unit Business Rules.......................................................35
2.3.3A External Market Sellers................................................................................36
2.3.3A.1 External Resource Day-ahead Market Requirements.....................37
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2.3.3A.2 External Resource Reliability Assessment and Commitment
Run Requirements.....................................................................................37
2.3.3A.3 External Resource Real-time Market Requirements.......................37
2.3.3.4 Public Distribution Microgrid Generators............................................37
2.3.4 Minimum Generator Operating Parameters – Parameter Limited
Schedules............................................................................................................38
2.3.4.1 Parameter Limits................................................................................38
2.3.4.2 Unit Specific Parameter Adjustments.................................................38
2.3.4.3 Parameter Limited Schedule Exceptions...........................................40
2.3.4.4 Real Time Values...............................................................................42
2.3.4.5 Consideration of Price-based Parameter-Limited Schedules in
Commitment and Dispatch........................................................................43
2.3.4.6 Minimum Run Time for Pseudo Modeled Combined Cycle Units......43
2.3.4A Internal and External Bilateral Transactions.................................................43
2.3.4B Energy Storage Resource (ESR) Participation Model..................................44
2.3.5 Curtailment Service Providers........................................................................46
2.3.6 PJM Activities..................................................................................................46
2.3.6.1 Market Power Mitigation.....................................................................47
2.3.6.2 Resource Energy Offer Validation (for offers greater than $1,000/
MWh) ........................................................................................................48
2.3.6.3 Fast-Start Capable Generation Resource Composite Energy
Offer Screening Process for Composite Offers more than $1,000/MWh...50
2.3.7 Mechanical/Technical Rules............................................................................51
2.3.8 Modeling.........................................................................................................52
2.3.9 Day-ahead Locational Marginal Price (LMP) Calculations..............................53
2.3.10 Operating Parameter Definitions...................................................................53
2.4 Real-time Market Operations.......................................................................................54
2.5 Real-time Clearing Engines.........................................................................................54
2.5.1 Ancillary Service Optimizer (ASO)..................................................................55
2.5.2 Intermediate Term Security Constrained Economic Dispatch (IT SCED).......55
2.5.3 Real-time Security Constrained Economic Dispatch (RT SCED)...................56
2.5.3.1 Real-time Security Constrained Economic Dispatch Optimization.....56
2.5.3.2 Real-time Security Constrained Economic Dispatch Marginal
Resource Identification..............................................................................57
2.5.3.3 Real-time Security Constrained Economic Dispatch Methodology....57
2.5.3.4 Real-time Security Constrained Economic Dispatch Timeline and
Instruction Set............................................................................................61
2.5.3.5 Real-time Security Constrained Economic Dispatch Inputs...............61
2.6 PJM State Estimator....................................................................................................62
2.7 Locational Pricing Calculator (LPC).............................................................................63
2.7.1 Energy Offers used in Real-time Price Calculation.........................................64
2.7.2 Determination of LMPS for De-Energized Busses..........................................65
2.7.3 Determination of Energy Offers for Generation Resources with
Composite Energy Offers greater than $1,000/ MWh and equal to or below
$2,000/MWh........................................................................................................66
2.7.4 Determination of Energy Offers for Generation Resources with offers
greater than $2,000/MWh....................................................................................67
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2.7.5 Determination of Energy Offers for Composite Energy Offers Greater than
$2,000/MWh........................................................................................................67
2.8 The Calculation of Locational Marginal Prices (LMPs) During Emergency
Procedures....................................................................................................................68
2.9 Shortage Pricing..........................................................................................................70
2.9.1 Calculation of Shortage Pricing LMPs............................................................70
2.10 PJM Real-Time Price Verification Procedure.............................................................71
2.11 Price-Bounding Violations..........................................................................................73
2.12 Calculation of Ramp Limited Desired MWh...............................................................73
2.13 Section Retired..........................................................................................................74
2.14 Balancing Operating Reserve Cost Analysis.............................................................74
2.15 Maximum Emergency Generation in Day-ahead Market...........................................77
2.16 Minimum Capacity Emergency in Day-ahead Market................................................77
2.17 Applying Transmission Constraint Penalty Factors in the Market Clearing Engine...78
2.18 Applying Stability Limits in the Market Clearing Engine.............................................79
2.18.1 Treatment of non-Real MW Stability Limits...................................................79
Section 3: Overview of the PJM Regulation Market..............................80
3.1 Overview of the PJM Regulation Market.....................................................................80
3.2 PJM Regulation Market Business Rules......................................................................81
3.2.1 Regulation Market Eligibility............................................................................81
3.2.2 Regulation Market Data Timeline....................................................................83
3.2.3 Regulation Bilateral Transactions...................................................................84
3.2.4 Regulation Requirement Determination..........................................................85
3.2.5 Regulation Obligation .....................................................................................85
3.2.6 Regulation Offer Period..................................................................................85
3.2.7 Regulation Market Clearing............................................................................86
3.2.7.1 Dispatch in the Regulation Market.....................................................86
3.2.7.2 Regulating Capability ........................................................................86
3.2.7.3 Mileage and the Performance Offer...................................................86
3.2.7.4 Lost Opportunity Cost (LOC)..............................................................87
3.2.7.5 Total Offer...........................................................................................88
3.2.7.6 Benefits Factor Function....................................................................90
3.2.7.7 Three Pivotal Supplier Test................................................................92
3.2.8 Hydropower Units Opportunity Cost...............................................................93
3.2.8.1 Hydropower Operation.......................................................................94
3.2.9 Regulation Market Operations........................................................................94
3.2.10 Settlements...................................................................................................95
Section 4: Overview of the PJM Synchronized Reserve Market..........96
4.1 Overview of the PJM Synchronized Reserve Markets.................................................96
4.2 PJM Synchronized Reserve Market Offer Business Rules..........................................99
4.2.1 Synchronized Reserve Market Eligibility.........................................................99
4.2.1.1 Requests for Eligibility for Nuclear, Wind, Solar Resources...............99
4.2.1.2 Economic Load Response Reserve Eligibility..................................100
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4.2.2 Reserve Resource Offer Requirements........................................................101
4.2.2.1 Communication for Reserve Capability Limitation...........................101
4.2.3 Reserve Market Resource Offer Structure....................................................102
4.2.4 Offer Period Timing.......................................................................................104
4.2.5 Reserve Market Resource Capability...........................................................105
4.2.5.1 Reserve Market Capability for Online Generation Resources.........105
4.2.5.2 Reserve Market Capability for Offline Generation Resources.........105
4.2.5.3 Reserve Market Capability for Synchronous Condensers...............106
4.2.5.4 Reserve Market Capability for Hydropower Resources...................107
4.2.3 Synchronized Reserve Obligation.................................................................114
4.2.4 Synchronized Reserve Offer Period..............................................................115
4.2.5 Bilateral Synchronized Reserve Transactions...............................................115
4.2.6 Synchronized ReserveCommitment..............................................................116
4.2.7 Hydropower Units..........................................................................................119
4.2.8 Demand Resources......................................................................................119
4.2.9 Synchronized Reserve Market Clearing Price (SRMCP) Calculation...........120
4.2.10 Settlements.................................................................................................121
4.2.11 Verification...................................................................................................122
4.2.12 Non-Performance........................................................................................122
4.3 Reserve Requirement Determination........................................................................123
4.3.1 Locational Aspect of Reserves.....................................................................125
4.3.2 Creation of New Reserve Subzones.............................................................126
4.3.3 Reserve Demand Curves and Penalty Factors.............................................126
4.4 Reserve Market Clearing...........................................................................................128
4.4.1 Product and Locational Substitution.............................................................128
4.4.2 Day-ahead Reserve Market Clearing............................................................129
4.4.3 Real-Time Reserve Market Clearing.............................................................130
4.4.3.1 Deselection of Reserve Resources in Real-Time............................132
4.3.4 Opportunity Costs for Condensers in the Reserve Clearing.........................133
4.4.5 Determination of Reserve Clearing Prices....................................................134
4.4.5.1 Determination of Synchronized Reserve Clearing Prices................135
4.4.5.2 Determination of Non-Synchronized Reserve Clearing Prices........136
4.4.5.3 Determination of Secondary Reserve Clearing Prices.....................136
4.5 Event Performance ...................................................................................................136
4.5.1 Performance Verification...............................................................................136
4.5.2 Non-Performance..........................................................................................138
4.6 Reserve Obligations .................................................................................................139
4.7 Bilateral Reserve Transactions..................................................................................140
4.8 Reserve Settlements.................................................................................................140
Section 4b: Overview of the Non-Synchronized Reserve
MarketSection Retired........................................................................141
4b.1 Overview of the Non-Synchronized Reserve MarketSection Retired......................141
4b.2 Non-Synchronized Reserve Market Business RulesSection Retired......................142
4b.2.1 Non-Synchronized Reserve Resource Eligibility.........................................142
4b.2.2 Non-Synchronized Reserve Zones and Levels...........................................142
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4b.2.3 Non-Synchronized Reserve Offer Information............................................143
4b.2.4 Non-Synchronized Reserve Commitments.................................................143
4b.2.5 Non-Synchronized Reserve Market Clearing Price (NSRMCP)
Calculation.........................................................................................................144
4b.2.6 Non-Synchronized Reserve Obligation.......................................................144
4b.2.7 Non-Synchronized Reserve Bilateral Transactions.....................................145
4b.2.8 Non-Synchronized Reserve Settlement......................................................145
4b.2.9 Verification..................................................................................................145
4b.2.10 Non-Performance......................................................................................145
Section 5: Market Clearing Processes and Tools................................147
5.1 PJM Scheduling Process ..........................................................................................147
5.2 Scheduling Tools........................................................................................................149
5.2.1 ExSchedule...................................................................................................149
5.2.2 PJM InSchedule............................................................................................150
5.2.3 Load Forecasting..........................................................................................150
5.2.4 Markets Database System............................................................................151
5.2.5 Hydro Calculator...........................................................................................152
5.2.6 PJM Day-ahead Energy Market Technical Software.....................................152
5.2.7 Calculation of Day-ahead Prices...................................................................154
5.2.7.1 Day-ahead Integer Relaxation.........................................................155
5.2.7.2 Energy Offers used in Day-ahead Price Calculation........................156
5.2.7.3 Determination of Energy Offer for Generation Resources with
Composite Energy Offers Greater Than $1,000/MWh and equal to or
below $2,000/MWh..................................................................................157
5.2.7.4 Determination of Energy Offer for Generation Resources with
Offers Greater than $2,000/MWh............................................................158
5.2.7.5 Determination of Energy Offer for Composite Energy Offers
Greater than $2,000/MWh.......................................................................158
Section 6: Section Retired.....................................................................160
Section 7: External Transaction Scheduling........................................161
7.1 Net Interchange Cap..................................................................................................161
7.2 Overview of the PJM-MISO Coordinated Transaction Scheduling............................162
7.3 PJM-MISO Coordinated Transaction Scheduling Business Rules............................162
7.3.1 CTS Bid Clearing..........................................................................................162
7.3.2 CTS Common Clearing.................................................................................163
7.3.3 CTS Clearing Suspension.............................................................................163
7.3.4 CTS Settlement.............................................................................................164
Section 8: Posting OASIS Information................................................. 165
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Section 9: Hourly Scheduling................................................................166
9.1 Hourly Schedule Adjustments ...................................................................................166
9.1.1 Intraday Offers Optionality............................................................................169
9.2 Self-Schedule Adjustments........................................................................................170
Section 10: Overview of the Demand Resource Participation........... 171
10.1 Overview of Demand Resource Participation..........................................................171
10.1.1 Economic Load Response Participant Review Process.............................172
10.2 Demand Resource Registration Requirements.......................................................173
10.2.1 Registration combinations...........................................................................173
10.2.2 Curtailment Service Providers....................................................................174
10.2.2.1 Dispatch Groups ...........................................................................179
10.2.2.2 Customer Usage Information Authorization...................................180
10.2.3 PJM Activities..............................................................................................182
10.2.4 Electric Distribution Company (“EDC”) and Load Serving Entity (“LSE”)
Activities............................................................................................................182
10.2.5 CBL Certification Process...........................................................................183
10.3 Economic DR Energy Market Participation..............................................................184
10.3.1 Economic Load Response Resource Composite Energy Offer Screening
Process for Composite Offers more than $1,000/MWh.....................................186
10.3.2 Determination of LMPs for Economic Load Response Resources with
Composite Energy Offers greater than 1,000/ MWh and equal to or below
$2,000/MWh......................................................................................................186
10.3.3 Determination of LMPs for Composite Energy Offers Greater than
$2,000/MWh......................................................................................................187
10.3.4 Net Benefits Test to determine Net Benefits Threshold..............................188
10.4 Demand Resource Metering and Settlement Data Requirements...........................189
10.4.1 Metered Data..............................................................................................189
10.4.2 Customer Baseline Load (CBL)..................................................................190
10.4.3 Economic Energy Settlements....................................................................197
10.4.4 Economic Energy Settlements Cost Allocation...........................................199
10.4.5 Emergency and Pre-Emergency Energy Settlements................................199
10.4.6 Emergency and Pre-Emergency Energy Settlements Cost Allocation.......200
10.5 Aggregation for Economic, Pre-Emergency and Emergency Demand Resources.200
10.5.1 Calculations for the Weighted Average Line Loss Factor...........................201
10.5.2 Settlement for Aggregation.........................................................................201
10.6 Interval Meter Equipment and Load Data Requirements.........................................202
10.7 Use of Sub-meter Load Data to Support Demand Response Regulation
Compliance.................................................................................................................203
Section 11: Overview of the Day-ahead Scheduling Reserve
MarketSection Retired........................................................................205
11.1 Overview of Day-ahead Scheduling Reserve MarketSection Retired......................205
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11.2 PJM Day-ahead Reserve Market Business RulesSection Retired..........................205
11.2.1 Day-ahead Scheduling Reserve Market Reserve Requirement.................205
11.2.2 Day-ahead Scheduling Reserve Market Eligibility......................................207
11.2.3 Day-ahead Scheduling Reserve Market Rules...........................................208
11.2.4 Day-ahead Scheduling Reserve Market Offer Period.................................209
11.2.5 Day-ahead Scheduling Reserve Market Clearing.......................................209
11.2.6 Day-ahead Scheduling Reserve Market Operations...................................210
11.2.7 Day-ahead Scheduling Reserve Performance............................................210
11.2.8 Day-ahead Scheduling Reserve Market Obligation Fulfillment...................210
11.2.9 Day-ahead Scheduling Reserve Bilateral Transactions..............................211
11.2.10 Day-ahead Scheduling Reserve Market Settlement.................................211
Section 12: Overview of the Price Responsive Demand.....................213
12.1 Overview of Price Responsive Demand..................................................................213
12.2 Price Responsive Demand Business Rules............................................................213
12.2.1 Price-Demand Curves in the Energy Market..............................................213
12.2.2 Characteristics of Price-Demand Curves in the PJM Energy Market.........214
12.2.3 Section Retired...........................................................................................214
12.2.4 Price-Demand Curves in Real-time Energy Market Operations.................214
12.2.5 Section Deleted...........................................................................................215
12.2.6 PRD Curves Submitted by PRD Providers.................................................215
Attachment A: Interchange Energy Schedule Curtailment Order......216
Attachment B: Pumped Storage Modeling...........................................217
Attachment C: PJM Procedure for Cost Adjustment.......................... 219
Attachment D: Verification of Offers greater than $1,000/MWh that
were not eligible to set LMP...............................................................222
Revision History..................................................................................... 224
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PJM Manual 11: Energy & Ancillary Services Market Operations
Table of Exhibits
Table of Exhibits
Exhibit 1: Load Forecasting Process............................................................................151
Exhibit 2: Energy Market Daily......................................................................................152
Exhibit 3: Settlement Subsystems................................................................................153
Exhibit 4: Download Data from Markets Database.......................................................155
Exhibit 5: Energy Market Data Flow............................................................................. 155
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Approval
Approval
Approval Date: 07/06/202209/29/2022
Effective Date: 07/07/202210/01/2022
Mike WardJoe Ciabattoni, Sr. Manager
Day-Ahead Market Operations
Brian Chmielewski, Manager
Real-Time Market Operations
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