Operating Reserves. (a) A Market Seller’s pool-scheduled resources capable of providing Operating Reserves shall be credited as specified below based on the prices offered for the operation of such resource, provided that the resource was available for the entire time specified in the Offer Data for such resource. To the extent that Section 3.2.3A.01 of Schedule 1 of this Agreement does not meet the Day-ahead Scheduling Reserves Requirement, the Office of the Interconnection shall schedule additional Operating Reserves pursuant to Section 1.7.17 and 1.10 of Schedule 1 of this Agreement. In addition the Office of the Interconnection shall schedule Operating Reserves pursuant to those sections to satisfy any unforeseen Operating Reserve requirements that are not reflected in the Day-ahead Scheduling Reserves Requirement. (b) The following determination shall be made for each pool-scheduled resource that is scheduled in the Day-ahead Energy Market: the total offered price for start-up and no-load fees and energy, determined on the basis of the resource’s scheduled output, shall be compared to the total value of that resource’s energy – as determined by the Day-ahead Energy Market and the Day-ahead Prices applicable to the relevant generation bus in the Day-ahead Energy Market. PJM shall also (i) determine whether any resources were scheduled in the Day-ahead Energy Market to provide Black Start service, Reactive Services or transfer interface control during the Operating Day because they are known or expected to be needed to maintain system reliability in a Zone during the Operating Day in order to minimize the total cost of Operating Reserves associated with the provision of such services and reflect the most accurate possible expectation of real-time operating conditions in the day-ahead model, which resources would not have otherwise been committed in the day-ahead security-constrained dispatch and (ii) report on the day following the Operating Day the megawatt quantities scheduled in the Day-ahead Energy Market for the above-enumerated purposes for the entire RTO. Except as provided in Section 3.2.3(n), if the total offered price summed over all hours exceeds the total value summed over all hours, the difference shall be credited to the Market Seller. The Office of the Interconnection shall apply any balancing Operating Reserve credits allocated pursuant to this Section 3.2.3(b) to real-time deviations from day-ahead schedules or real-time load share plus exports, pursuant to Section 3.2.3(p), depending on whether the balancing Operating Reserve credits are related to resources scheduled during the reliability analysis for an Operating Day, or during the actual Operating Day. (i) For resources scheduled by the Office of the Interconnection during the reliability analysis for an Operating Day, the associated balancing Operating Reserve credits shall be allocated based on the reason the resource was scheduled according to the following provisions: (A) If the Office of the Interconnection determines during the reliability analysis for an Operating Day that a resource was committed to operate in real-time to augment the physical resources committed in the Day-ahead Energy Market to meet the forecasted real-time load plus the Operating Reserve requirement, the associated balancing Operating Reserve credits, identified as RA Credits for Deviations, shall be allocated to real-time deviations from day-ahead schedules. (B) If the Office of the Interconnection determines during the reliability analysis for an Operating Day that a resource was committed to maintain system reliability, the associated balancing Operating Reserve credits, identified as RA Credits for Reliability, shall be allocated according to ratio share of real time load plus export transactions. (C) If the Office of the Interconnection determines during the reliability analysis for an Operating Day that a resource with a day-ahead schedule is required to deviate from that schedule to provide balancing Operating Reserves, the associated balancing Operating Reserve credits shall be segmented and separately allocated pursuant to subsections 3.2.3(b)(i)(A) or 3.2.3(b)(i)(B) hereof. Balancing Operating Reserve credits for such resources will be identified in the same manner as units committed during the reliability analysis pursuant to subsections 3.2.3(b)(i)(A) and 3.2.3(b)(i)(B) hereof. (ii) For resources scheduled during an Operating Day, the associated balancing Operating Reserve credits shall be allocated according to the following provisions: (A) If the Office of the Interconnection directs a resource to operate during an Operating Day to provide balancing Operating Reserves, the associated balancing Operating Reserve credits, identified as RT Credits for Reliability, shall be allocated according to ratio share of load plus exports. The foregoing notwithstanding, credits will be applied pursuant to this section only if the LMP at the resource's bus does not meet or exceed the applicable offer of the resource for at least four 5-minute intervals during one or more discrete clock hours during each period the resource operated and produced MWs during the relevant Operating Day. If a resource operated and produced MWs for less than four 5-minute intervals during one or more discrete clock hours during the relevant Operating Day, the credits for that resource during the hour it was operated less than four 5-minute intervals will be identified as being in the same category (RT Credits for Reliability or RT Credits for Deviations) as identified for the Operating Reserves for the other discrete clock hours. (B) If the Office of the Interconnection directs a resource not covered by Section 3.2.3(b)(ii)(A) hereof to operate in real-time during an Operating Day, the associated balancing Operating Reserve credits, identified as RT Credits for Deviations, shall be allocated according to real-time deviations from day-ahead schedules. (iii) PJM shall post on its Web site the aggregate amount of MWs committed that meet the criteria referenced in subsections (b)(i) and (b)(ii) hereof.
Appears in 1 contract
Sources: PJM Operating Agreement
Operating Reserves. (a) A Market Seller’s pool-scheduled resources capable of providing Operating Reserves shall be credited as specified below based on the prices offered for the operation of such resource, provided that the resource was available for the entire time specified in the Offer Data for such resource. To the extent that Section 3.2.3A.01 of Schedule 1 of this Agreement does not meet the Day-ahead Scheduling Reserves Requirement, the Office of the Interconnection shall schedule additional Operating Reserves pursuant to Section 1.7.17 and 1.10 of Schedule 1 of this Agreement. In addition the Office of the Interconnection shall schedule Operating Reserves pursuant to those sections to satisfy any unforeseen Operating Reserve requirements that are not reflected in the Day-ahead Scheduling Reserves Requirement.
(b) The following determination shall be made for each pool-scheduled resource that is scheduled in the Day-ahead Energy Market: the total offered price for start-up and no-load fees and energy, determined on the basis of the resource’s scheduled output, shall be compared to the total value of that resource’s energy – as determined by the Day-ahead Energy Market and the Day-ahead Prices applicable to the relevant generation bus in the Day-ahead Energy Market. PJM shall also (i) determine whether any resources were scheduled in the Day-ahead Energy Market to provide Black Start service, Reactive Services or transfer interface control during the Operating Day because they are known or expected to be needed to maintain system reliability in a Zone during the Operating Day in order to minimize the total cost of Operating Reserves associated with the provision of such services and reflect the most accurate possible expectation of real-time operating conditions in the day-ahead model, which resources would not have otherwise been committed in the day-ahead security-constrained dispatch and (ii) report on the day following the Operating Day the megawatt quantities scheduled in the Day-ahead Energy Market for the above-enumerated purposes for the entire RTO. Except as provided in Section 3.2.3(n), if the total offered price summed over all hours exceeds the total value summed over all hours, the difference shall be credited to the Market Seller. The Office of the Interconnection shall apply any balancing Operating Reserve credits allocated pursuant to this Section 3.2.3(b) to real-time deviations from day-ahead schedules or real-time load share plus exports, pursuant to Section 3.2.3(p), depending on whether the balancing Operating Reserve credits are related to resources scheduled during the reliability analysis for an Operating Day, or during the actual Operating Day.
(i) For resources scheduled by the Office of the Interconnection during the reliability analysis for an Operating Day, the associated balancing Operating Reserve credits shall be allocated based on the reason the resource was scheduled according to the following provisions:
(A) If the Office of the Interconnection determines during the reliability analysis for an Operating Day that a resource was committed to operate in real-time to augment the physical resources committed in the Day-ahead Energy Market to meet the forecasted real-time load plus the Operating Reserve requirement, the associated balancing Operating Reserve credits, identified as RA Credits for Deviations, shall be allocated to real-time deviations from day-ahead schedules.
(B) If the Office of the Interconnection determines during the reliability analysis for an Operating Day that a resource was committed to maintain system reliability, the associated balancing Operating Reserve credits, identified as RA Credits for Reliability, shall be allocated according to ratio share of real time load plus export transactions.
(C) If the Office of the Interconnection determines during the reliability analysis for an Operating Day that a resource with a day-ahead schedule is required to deviate from that schedule to provide balancing Operating Reserves, the associated balancing Operating Reserve credits shall be segmented and separately allocated pursuant to subsections 3.2.3(b)(i)(A) or 3.2.3(b)(i)(B) hereof. Balancing Operating Reserve credits for such resources will be identified in the same manner as units committed during the reliability analysis pursuant to subsections 3.2.3(b)(i)(A) and 3.2.3(b)(i)(B) hereof.
(ii) For resources scheduled during an Operating Day, the associated balancing Operating Reserve credits shall be allocated according to the following provisions:
(A) If the Office of the Interconnection directs a resource to operate during an Operating Day to provide balancing Operating Reserves, the associated balancing Operating Reserve credits, identified as RT Credits for Reliability, shall be allocated according to ratio share of load plus exports. The foregoing notwithstanding, credits will be applied pursuant to this section only if the LMP at the resource's bus does not meet or exceed the applicable offer of the resource for at least four 5-minute intervals during one or more discrete clock hours during each period the resource operated and produced MWs during the relevant Operating Day. If a resource operated and produced MWs for less than four 5-5- minute intervals during one or more discrete clock hours during the relevant Operating Day, the credits for that resource during the hour it was operated less than four 5-minute intervals will be identified as being in the same category (RT Credits for Reliability or RT Credits for Deviations) as identified for the Operating Reserves for the other discrete clock hours.
(B) If the Office of the Interconnection directs a resource not covered by Section 3.2.3(b)(ii)(A) hereof to operate in real-time during an Operating Day, the associated balancing Operating Reserve credits, identified as RT Credits for Deviations, shall be allocated according to real-time deviations from day-ahead schedules.
(iii) PJM shall post on its Web site the aggregate amount of MWs committed that meet the criteria referenced in subsections (b)(i) and (b)(ii) hereof.
(c) The sum of the foregoing credits calculated in accordance with Section 3.2.3(b) plus any unallocated charges from Section 3.2.3(h) and 5.1.7, and any shortfalls paid pursuant to the Market Settlement provision of the Day-ahead Economic Load Response Program, shall be the cost of Operating Reserves in the Day-ahead Energy Market.
(d) The cost of Operating Reserves in the Day-ahead Energy Market shall be allocated and charged to each Market Participant in proportion to the sum of its (i) scheduled load (net of Behind The Meter Generation expected to be operating, but not to be less than zero) and accepted Decrement Bids in the Day-ahead Energy Market in megawatt-hours for that Operating Day; and (ii) scheduled energy sales in the Day-ahead Energy Market from within the PJM Region to load outside such region in megawatt-hours for that Operating Day, but not including its bilateral transactions that are Dynamic Transfers to load outside such area pursuant to Section 1.12, except to the extent PJM scheduled resources to provide Black Start service, Reactive Services or transfer interface control. The cost of Operating Reserves in the Day-ahead Energy Market for resources scheduled to provide Black Start service for the Operating Day which resources would not have otherwise been committed in the day-ahead security constrained dispatch shall be allocated by ratio share of the monthly transmission use of each Network Customer or Transmission Customer serving Zone Load or Non-Zone Load, as determined in accordance with the formulas contained in Schedule 6A of the PJM Tariff. The cost of Operating Reserves in the Day-ahead Energy Market for resources scheduled to provide Reactive Services or transfer interface control because they are known or expected to be needed to maintain system reliability in a Zone during the Operating Day and would not have otherwise been committed in the day-ahead security constrained dispatch shall be allocated and charged to each Market Participant in proportion to the sum of its real-time deliveries of energy to load (net of operating Behind The Meter Generation) in such Zone, served under Network Transmission Service, in megawatt-hours during that Operating Day, as compared to all such deliveries for all Market Participants in such Zone.
(e) At the end of each Operating Day, the following determination shall be made for each synchronized pool-scheduled resource of each Market Seller that operates as requested by the Office of the Interconnection. For each calendar day, pool-scheduled resources in the Real- time Energy Market shall be made whole for each of the following segments: 1) the greater of their day-ahead schedules or minimum run time (minimum down time for Demand Resources); and 2) any block of hours the resource operates at PJM’s direction in excess of the greater of its day-ahead schedule or minimum run time (minimum down time for Demand Resources). For each calendar day, and for each synchronized start of a generation resource or PJM-dispatched economic load reduction, there will be a maximum of two segments for each resource. Segment 1 will be the greater of the day-ahead schedule and minimum run time (minimum down time for Demand Resources) and Segment 2 will include the remainder of the contiguous hours when the resource is operating at the direction of the Office of the Interconnection, provided that a segment is limited to the Operating Day in which it commenced and cannot include any part of the following Operating Day. A Generation Capacity Resource that operates outside of its unit-specific parameters will not receive Operating Reserve Credits nor be made whole for such operation when not dispatched by the Office of the Interconnection, unless the Market Seller of the Generation Capacity Resource can justify to the Office of the Interconnection that operation outside of such unit-specific parameters was the result of an actual constraint. Such Market Seller shall provide to the Market Monitoring Unit and the Office of the Interconnection its request to receive Operating Reserve Credits and/or to be made whole for such operation, along with documentation explaining in detail the reasons for operating its resource outside of its unit-specific parameters, within thirty calendar days following the issuance of billing statement for the Operating Day. The Market Seller shall also respond to additional requests for information from the Market Monitoring Unit and the Office of the Interconnection. The Market Monitoring Unit shall evaluate such request for compensation and provide its determination of whether there was an exercise of market power to the Office of the Interconnection by no later than twenty-five calendar days after receiving the Market Seller’s request for compensation. The Office of the Interconnection shall make its determination whether the Market Seller justified that it is entitled to receive Operating Reserve Credits and/or be made whole for such operation of its resource for the day(s) in question, by no later than thirty calendar days after receiving the Market Seller’s request for compensation. Credits received pursuant to this section shall be equal to the positive difference between a resource’s total offered price for start-up (shutdown costs for Demand Resources) and no-load fees and energy, determined on the basis of the resource’s scheduled output, and the total value of the resource’s energy in the Day-ahead Energy Market plus any credit or change for quantity deviations, at PJM dispatch direction, from the Day-ahead Energy Market during the Operating Day at the real-time LMP(s) applicable to the relevant generation bus in the Real-time Energy Market. The foregoing notwithstanding, credits for segment 2 shall exclude start up (shutdown costs for Demand Resources) costs for generation resources. Except as provided in Section 3.2.3(m), if the total offered price exceeds the total value, the difference less any credit as determined pursuant to Section 3.2.3(b), and less any amounts credited for Synchronized Reserve in excess of the Synchronized Reserve offer plus the resource’s opportunity cost, and less any amounts credited for Non-Synchronized Reserve in excess of the Non-Synchronized Reserve offer plus the resource’s opportunity cost, and less any amounts credited for providing Reactive Services as specified in Section 3.2.3B, and less any amounts for Day-ahead Scheduling Reserve in excess of the Day-ahead Scheduling Reserve offer plus the resource’s opportunity cost, shall be credited to the Market Seller. Synchronized Reserve, Non-Synchronized Reserve, and Day-ahead Scheduling Reserve credits applied against Operating Reserve credits pursuant to this section shall be netted against the Operating Reserve credits earned in the corresponding hour(s) in which the Synchronized Reserve, Non-Synchronized Reserve, and Day-ahead Scheduling Reserve credits accrued, provided that for condensing combustion turbines, Synchronized Reserve credits will be netted against the total Operating Reserve credits accrued during each hour the unit operates in condensing and generation mode.
(f) A Market Seller’s steam-electric generating unit or combined cycle unit operating in combined cycle mode that is pool-scheduled (or self-scheduled, if operating according to Section 1.10.3 (c) hereof), the output of which is reduced or suspended at the request of the Office of the Interconnection due to a transmission constraint or other reliability issue, and for which the hourly integrated, real-time LMP at the unit’s bus is higher than the unit’s offer corresponding to the level of output requested by the Office of the Interconnection (as indicated either by the desired MWs of output from the unit determined by PJM’s unit dispatch system or as directed by the PJM dispatcher through a manual override), shall be credited hourly in an amount equal to the product of (A) the deviation of the generating unit’s output necessary to follow the Office of the Interconnection’s signals and the generating unit’s expected output level if it had been dispatched in economic merit order, times (B) the Locational Marginal Price at the generation bus for the generating unit, minus (C) the applicable offer for energy on which the generating unit was committed in the Real-time Energy Market, provided that the resulting outcome is greater than $0.00. This equation is represented as (A*B) - C. The deviation of the generating unit’s output is equal to the level of output for the unit determined according to the point on the scheduled offer curve on which the unit was operating corresponding to the hourly integrated real time Locational Marginal Price at the unit’s bus and adjusted for any Regulation or Tier 2 Synchronized Reserve assignments and limited to the lesser of the unit’s Economic Maximum or the unit’s Maximum Facility Output, minus the actual hourly integrated output of the unit. For pool-scheduled generating units, their applicable offer for energy is the offer on which the resource was committed. For self-scheduled generating units, their applicable offer for energy shall equal the real-time scheduled offer curve on which the unit was operating, unless such schedule was a price-based schedule and the offer associated with that price schedule is less than the cost-based offer provided for the unit, in which case the offer for the unit will be determined from the cost-based schedule.
(f-1) A Market Seller’s combustion turbine unit or combined cycle unit operating in simple cycle mode that is pool-scheduled (or self-scheduled, if operating according to Section
Appears in 1 contract
Sources: PJM Operating Agreement
Operating Reserves. (a) A Market Seller’s 's pool-scheduled resources capable of providing Operating Reserves operating reserves shall be credited as specified below based on the prices offered for the operation of such resource, provided that the resource was available for the entire time specified in the Offer Data for such resource. To the extent that Section 3.2.3A.01 of Schedule 1 of this Agreement does not meet the Day-ahead Scheduling Reserves Requirement, the Office of the Interconnection shall schedule additional Operating Reserves pursuant to Section 1.7.17 and 1.10 of Schedule 1 of this Agreement. In addition the Office of the Interconnection shall schedule Operating Reserves pursuant to those sections to satisfy any unforeseen Operating Reserve requirements that are not reflected in the Day-ahead Scheduling Reserves Requirement.
(b) The following determination shall be made for each pool-pool- scheduled resource that is scheduled in the Day-ahead Energy Market: the total offered price for start-up and no-load fees and energySpot Market Energy, determined on the basis of the resource’s 's scheduled output, shall be compared to the total value of that resource’s energy – 's Spot Market Energy as determined by the Day-ahead Energy Market and the Day-ahead Prices applicable to the relevant generation bus in the Day-ahead Energy Market. PJM shall also (i) determine whether any resources were scheduled in the Day-ahead Energy Market to provide Black Start service, Reactive Services or transfer interface control during the Operating Day because they are known or expected to be needed to maintain system reliability in a Zone during the Operating Day in order to minimize the total cost of Operating Reserves associated with the provision of such services and reflect the most accurate possible expectation of real-time operating conditions in the day-ahead model, which resources would not have otherwise been committed in the day-ahead security-constrained dispatch and (ii) report on the day following the Operating Day the megawatt quantities scheduled in the Day-ahead Energy Market for the above-enumerated purposes for the entire RTO. Except as provided in Section 3.2.3(n), if the total offered price summed over all hours exceeds the total value summed over all hours, the difference shall be credited to the Market Seller. .
(c) The Office sum of the Interconnection shall apply any balancing Operating Reserve foregoing credits allocated pursuant to this calculated in accordance with Section 3.2.3(b) to real-time deviations plus any unallocated charges from daySection 3.2.3(h) and 5.1.7, shall be the cost of Operating Reserves in the Day-ahead schedules or real-time load share plus exports, pursuant to Section 3.2.3(p), depending on whether the balancing Operating Reserve credits are related to resources scheduled during the reliability analysis for an Operating Day, or during the actual Operating DayEnergy Market.
(id) For resources scheduled by the Office The cost of the Interconnection during the reliability analysis for an Operating Day, the associated balancing Operating Reserve credits shall be allocated based on the reason the resource was scheduled according to the following provisions:
(A) If the Office of the Interconnection determines during the reliability analysis for an Operating Day that a resource was committed to operate in real-time to augment the physical resources committed Reserves in the Day-ahead Energy Market to meet the forecasted real-time load plus the Operating Reserve requirement, the associated balancing Operating Reserve credits, identified as RA Credits for Deviations, shall be allocated and charged to real-time deviations from dayeach Market Participant in proportion to the sum of its (i) scheduled load and accepted Decrement Bids in the Day-ahead schedulesEnergy Market in megawatt-hours for that Operating Day; and (ii) scheduled energy sales in the Day-ahead Energy Market from within the PJM Control Area to load outside the PJM Control Area in megawatt-hours for that Operating Day, but not including its bilateral transactions that are dynamically scheduled to load outside the PJM Control Area pursuant to Section 1.12.
(Be) If At the end of each Operating Day, the following determination shall be made for each synchronized pool-scheduled resource of each Market Seller that operates as requested by the Office of the Interconnection determines and that is not committed solely for the purpose of providing spinning reserves: the total offered price for start-up and no-load fees and Spot Market Energy, determined on the basis of the lesser of the resource's (i) hourly output as determined by the State Estimator, or (ii) requested output as determined by the PJM dispatch. The total offered price shall be compared to the total value of that resource's energy in the Day-ahead Energy Market plus any credit or charge for quantity deviations, at PJM dispatch direction, from the Day-ahead Energy Market during the reliability analysis for an Operating Day that a resource was committed to maintain system reliabilityDay. Except as provided in Section 3.2.3(m), if the total offered price exceeds the total value, the associated balancing Operating Reserve credits, identified difference less any credit as RA Credits determined pursuant to Section 3.2.3(b) and less any amounts credited for ReliabilityRegulation in excess of the Regulation offer plus the resources opportunity cost, shall be allocated according credited to ratio share of real time load plus export transactionsthe Market Seller.
(Cf) If A Market Seller's pool scheduled resource the output of which is reduced or suspended at the request of the Office of the Interconnection determines during for the purpose of maintaining reliability analysis for an Operating Day that a resource with a day-ahead schedule is required to deviate from that schedule to provide balancing Operating Reserves, within the associated balancing Operating Reserve credits shall be segmented and separately allocated pursuant to subsections 3.2.3(b)(i)(A) or 3.2.3(b)(i)(B) hereof. Balancing Operating Reserve credits for such resources will be identified in the same manner as units committed during the reliability analysis pursuant to subsections 3.2.3(b)(i)(A) and 3.2.3(b)(i)(B) hereof.
(ii) For resources scheduled during an Operating Day, the associated balancing Operating Reserve credits shall be allocated according to the following provisions:
(A) If the Office of the Interconnection directs a resource to operate during an Operating Day to provide balancing Operating Reserves, the associated balancing Operating Reserve credits, identified as RT Credits for ReliabilityPJM Control Area, shall be allocated according credited in an amount equal to ratio share (PAG - AG) x LT x (ULMP - UB) where: PAG equals the actual generation of load plus exportsthe unit for the five minute period preceding the request; Issued By: ▇▇▇▇▇▇▇ ▇. The foregoing notwithstandingDrom Effective: November 10, credits will be applied pursuant 2000 Vice President, General Counsel Issued On: November 9, 2000 PJM Interconnection, L.L.C. Original Sheet No. 99 First Revised Rate Schedule FERC No. 24 AG equals the actual generation of the unit until PJM cancels the request to this section only if reduce output; LT equals the length of time that the request to reduce output was effective; ULMP equals the LMP at the resourceunit's bus does bus; UB equals the unit bid for that unit whose output is reduced or suspended; and where ULMP - UB shall not meet or exceed the applicable offer be negative.
(g) The sum of the resource foregoing credits, plus any cancellation fees paid in accordance with Section 1.10.2(d), such cancellation fees to be applied to the Operating Day for at least four 5-minute intervals during one or more discrete clock hours during each period which the resource operated and produced MWs during unit was scheduled, less any payments received from another Control Area for Operating Reserves, shall be the relevant Operating Day. If a resource operated and produced MWs for less than four 5-minute intervals during one or more discrete clock hours during the relevant Operating Day, the credits for that resource during the hour it was operated less than four 5-minute intervals will be identified as being in the same category (RT Credits for Reliability or RT Credits for Deviations) as identified for the cost of Operating Reserves for the other discrete clock hoursReal-time Energy Market in each Operating Day.
(Bh) If The cost of Operating Reserves for the Office Real-time Energy Market for each Operating Day shall be allocated and charged to each Market Participant in proportion to the sum of the Interconnection directs a resource not covered by Section 3.2.3(b)(ii)(Aabsolute values of its (i) hereof load deviations from the Day-ahead Energy Market in megawatt-hours during that Operating Day; (ii) generation deviations from the Day-ahead Energy Market for non-dispatchable generation resources, including External Resources, in megawatt-hours during the Operating Day; (iii) deviations from the Day-ahead Energy Market for bilateral transactions from outside the PJM Control Area for delivery within the PJM Control Area in megawatt-hours during the Operating Day; and (iv) deviations of energy sales from the Day-ahead Energy Market from within the PJM Control Area to operate load outside the PJM Control Area in realmegawatt-time hours during an that Operating Day, but not including its bilateral transactions that are dynamically scheduled to load outside the associated balancing Operating Reserve credits, identified as RT Credits for Deviations, shall be allocated according PJM Control Area pursuant to real-time deviations from day-ahead schedulesSection 1.12.
(iiii) PJM At the end of each Operating Day, Market Sellers shall post be credited on its Web site the aggregate amount basis of MWs committed that meet their offered prices for synchronized condensing for any hydropower or combustion turbine units operated as synchronous condensers but producing no energy, as well as the criteria referenced credits calculated as specified in subsections (b)(i) and (b)(ii) hereof.Section 3.2.3
Appears in 1 contract
Sources: Operating Agreement (PPL Corp)
Operating Reserves. (a) A Market Seller’s 's pool-scheduled resources capable of providing Operating Reserves operating reserves shall be credited as specified below based on the prices offered for the operation of such resource, provided that the resource was available for the entire time specified in the Offer Data for such resource. To the extent that Section 3.2.3A.01 of Schedule 1 of this Agreement does not meet the Day-ahead Scheduling Reserves Requirement, the Office of the Interconnection shall schedule additional Operating Reserves pursuant to Section 1.7.17 and 1.10 of Schedule 1 of this Agreement. In addition the Office of the Interconnection shall schedule Operating Reserves pursuant to those sections to satisfy any unforeseen Operating Reserve requirements that are not reflected in the Day-ahead Scheduling Reserves Requirement.
(b) The At the end of each Operating Day, the following determination shall be made for each synchronized pool-scheduled resource that is scheduled in the Day-ahead Energy Marketof each Market Seller: the total offered price for start-up and no-load fees and energySpot Market Energy, determined on the basis of the resource’s scheduled output's actual output or available and requested time and type of operation, shall be compared to the total value of that resource’s energy – as determined by the Day-ahead Energy 's Spot Market and the Day-ahead Prices applicable to the relevant generation bus in the Day-ahead Energy MarketEnergy. PJM shall also (i) determine whether any resources were scheduled in the Day-ahead Energy Market to provide Black Start service, Reactive Services or transfer interface control during the Operating Day because they are known or expected to be needed to maintain system reliability in a Zone during the Operating Day in order to minimize the total cost of Operating Reserves associated with the provision of such services and reflect the most accurate possible expectation of real-time operating conditions in the day-ahead model, which resources would not have otherwise been committed in the day-ahead security-constrained dispatch and (ii) report on the day following the Operating Day the megawatt quantities scheduled in the Day-ahead Energy Market for the above-enumerated purposes for the entire RTO. Except as provided in Section 3.2.3(n), if If the total offered price summed over all hours exceeds the total value summed over all hoursvalue, the difference shall be credited to the Market Seller. The Market Sellers shall also be credited on the basis of their offered prices for synchronized condensing for any hydropower or combustion turbine units operated as synchronous condensers at the request of Office of the Interconnection shall apply but producing no energy.
(c) The sum of the foregoing credits, plus any balancing Operating Reserve credits allocated pursuant to this cancellation fees paid in accordance with Section 3.2.3(b) to real-time deviations from day-ahead schedules or real-time load share plus exports, pursuant to Section 3.2.3(p1.10.2(d), depending on whether less any payments received from another Control Area for Operating Reserves, shall be the balancing cost of Operating Reserve credits are related to resources scheduled during Reserves for the reliability analysis PJM Control Area for an Operating Day, or during the actual each Operating Day.
(d) The cost of Operating Reserves for each Operating Day shall be allocated and charged to each Market Participant in proportion to the sum of its (i) For resources scheduled by deliveries of energy to load in the Office PJM Control Area in megawatt-hours during that Operating Day; and (ii) deliveries of energy sales from within the Interconnection PJM Control Area to load outside the PJM Control Area in megawatt-hours during the reliability analysis for an that Operating Day, but not including its bilateral transactions for delivery to load outside the associated balancing Operating Reserve credits shall be allocated based on the reason the resource was scheduled according to the following provisions:
(A) If the Office of the Interconnection determines during the reliability analysis PJM Control Area for an Operating Day that a resource was committed to operate in real-time to augment the physical resources committed in the Day-ahead Energy Market to meet the forecasted real-time load plus the Operating Reserve requirement, the associated balancing Operating Reserve credits, identified as RA Credits for Deviations, shall be allocated to real-time deviations from day-ahead schedules.
(B) If the Office of the Interconnection determines during the reliability analysis for an Operating Day that a resource was committed to maintain system reliability, the associated balancing Operating Reserve credits, identified as RA Credits for Reliability, shall be allocated according to ratio share of real time load plus export transactions.
(C) If the Office of the Interconnection determines during the reliability analysis for an Operating Day that a resource with a day-ahead schedule is required to deviate from that schedule to provide balancing Operating Reserves, the associated balancing Operating Reserve credits shall be segmented and separately allocated which it elected pursuant to subsections 3.2.3(b)(i)(ASection 1.10.1(d)(iv) or 3.2.3(b)(i)(Bnot to receive Spot Market Backup or, until such times as Section 1.10.1(d)(iv) hereof. Balancing Operating Reserve credits applies to Capacity Resources, its bilateral transactions for such resources will be identified in Capacity Resources to load outside the same manner as units committed during the reliability analysis pursuant to subsections 3.2.3(b)(i)(A) and 3.2.3(b)(i)(B) hereofPJM Control Area.
(ii) For resources scheduled during an Operating Day, the associated balancing Operating Reserve credits shall be allocated according to the following provisions:
(A) If the Office of the Interconnection directs a resource to operate during an Operating Day to provide balancing Operating Reserves, the associated balancing Operating Reserve credits, identified as RT Credits for Reliability, shall be allocated according to ratio share of load plus exports. The foregoing notwithstanding, credits will be applied pursuant to this section only if the LMP at the resource's bus does not meet or exceed the applicable offer of the resource for at least four 5-minute intervals during one or more discrete clock hours during each period the resource operated and produced MWs during the relevant Operating Day. If a resource operated and produced MWs for less than four 5-minute intervals during one or more discrete clock hours during the relevant Operating Day, the credits for that resource during the hour it was operated less than four 5-minute intervals will be identified as being in the same category (RT Credits for Reliability or RT Credits for Deviations) as identified for the Operating Reserves for the other discrete clock hours.
(B) If the Office of the Interconnection directs a resource not covered by Section 3.2.3(b)(ii)(A) hereof to operate in real-time during an Operating Day, the associated balancing Operating Reserve credits, identified as RT Credits for Deviations, shall be allocated according to real-time deviations from day-ahead schedules.
(iii) PJM shall post on its Web site the aggregate amount of MWs committed that meet the criteria referenced in subsections (b)(i) and (b)(ii) hereof.
Appears in 1 contract
Operating Reserves. (a) A Market Seller’s 's pool-scheduled resources capable of providing Operating Reserves operating reserves shall be credited as specified below based on the prices offered for the operation of such resource, provided that the resource was available for the entire time specified in the Offer Data for such resource. To the extent that Section 3.2.3A.01 of Schedule 1 of this Agreement does not meet the Day-ahead Scheduling Reserves Requirement, the Office of the Interconnection shall schedule additional Operating Reserves pursuant to Section 1.7.17 and 1.10 of Schedule 1 of this Agreement. In addition the Office of the Interconnection shall schedule Operating Reserves pursuant to those sections to satisfy any unforeseen Operating Reserve requirements that are not reflected in the Day-ahead Scheduling Reserves Requirement.
(b) The following determination shall be made for each pool-scheduled resource that is scheduled in the Day-ahead Energy Market: the total offered price for start-up and no-load fees and energySpot Market Energy, determined on the basis of the resource’s 's scheduled output, shall be compared to the total value of that resource’s energy – 's Spot Market Energy as determined by the Day-ahead Energy Market and the Day-ahead Prices applicable to the relevant generation bus in the Day-ahead Energy Market. PJM shall also (i) determine whether any resources were scheduled in the Day-ahead Energy Market to provide Black Start service, Reactive Services or transfer interface control during the Operating Day because they are known or expected to be needed to maintain system reliability in a Zone during the Operating Day in order to minimize the total cost of Operating Reserves associated with the provision of such services and reflect the most accurate possible expectation of real-time operating conditions in the day-ahead model, which resources would not have otherwise been committed in the day-ahead security-constrained dispatch and (ii) report on the day following the Operating Day the megawatt quantities scheduled in the Day-ahead Energy Market for the above-enumerated purposes for the entire RTO. Except as provided in Section 3.2.3(n), if the total offered price summed over all hours exceeds the total value summed over all hours, the difference shall be credited to the Market Seller.
(c) The sum of the foregoing credits calculated in accordance with Section 3.2.3(b) plus any unallocated charges from Section 3.2.3(h) and 5.1.7, shall be the cost of Operating Reserves in the Day-ahead Energy Market.
(d) The cost of Operating Reserves in the Day-ahead Energy Market shall be allocated and charged to each Market Participant in proportion to the sum of its (i) scheduled load and accepted Decrement Bids in the Day-ahead Energy Market in megawatt-hours for that Operating Day; and (ii) scheduled energy sales in the Day-ahead Energy Market from within the PJM Control Area to load outside the PJM Control Area in megawatt-hours for that Operating Day, but not including its bilateral transactions that are dynamically scheduled to load outside the PJM Control Area pursuant to Section 1.12.
(e) At the end of each Operating Day, the following determination shall be made for each synchronized pool-scheduled resource of each Market Seller that operates as requested by the Office of the Interconnection and that is not committed solely for the purpose of providing spinning reserves: the total offered price for start-up and no-load fees and Spot Market Energy, determined on the basis of the lesser of the resource's (i) hourly output as determined by the State Estimator, or (ii) requested output as determined by the PJM dispatch. The total offered price shall be compared to the total value of that resource's energy in the Day-ahead Energy Market plus any credit or charge for quantity deviations, at PJM dispatch direction, from the Day-ahead Energy Market during the Operating Day. Except as provided in Section 3.2.3(m), if the total offered price exceeds the total value, the difference less any credit as determined pursuant to Section 3.2.3(b) and less any amounts credited for Regulation in excess of the Regulation offer plus the resources opportunity cost, shall be credited to the Market Seller.
(f) A Market Seller's pool scheduled resource the output of which is reduced or suspended at the request of the Office of the Interconnection for the purpose of maintaining reliability within the PJM Control Area, shall be credited in an amount equal to (PAG - AG) x LT x (ULMP - UB) where: PAG equals the actual generation of the unit for the five minute period preceding the request; AG equals the actual generation of the unit until PJM cancels the request to reduce output; LT equals the length of time that the request to reduce output was effective; ULMP equals the LMP at the unit's bus; UB equals the unit bid for that unit whose output is reduced or suspended; and where ULMP - UB shall not be negative.
(g) The sum of the foregoing credits, plus any cancellation fees paid in accordance with Section 1.10.2(d), such cancellation fees to be applied to the Operating Day for which the unit was scheduled, less any payments received from another Control Area for Operating Reserves, shall be the cost of Operating Reserves for the Real-time Energy Market in each Operating Day.
(h) The cost of Operating Reserves for the Real-time Energy Market for each Operating Day shall be allocated and charged to each Market Participant in proportion to the sum of the absolute values of its (i) load deviations from the Day-ahead Energy Market in megawatt-hours during that Operating Day; (ii) generation deviations from the Day-ahead Energy Market for non-dispatchable generation resources, including External Resources, in megawatt-hours during the Operating Day; (iii) deviations from the Day-ahead Energy Market for bilateral transactions from outside the PJM Control Area for delivery within the PJM Control Area in megawatt-hours during the Operating Day; and (iv) deviations of energy sales from the Day-ahead Energy Market from within the PJM Control Area to load outside the PJM Control Area in megawatt-hours during that Operating Day, but not including its bilateral transactions that are dynamically scheduled to load outside the PJM Control Area pursuant to Section 1.12.
(i) At the end of each Operating Day, Market Sellers shall be credited on the basis of their offered prices for synchronized condensing for any hydropower or combustion turbine units operated as synchronous condensers but producing no energy, as well as the credits calculated as specified in Section 3.2.3(b) for those generators committed solely for the purpose of providing spinning reserves, at the request of the Office of the Interconnection.
(j) The sum of the foregoing credits as specified in Section 3.2.3(b) shall be the cost of Operating Reserves for synchronized condensing for the Operating Day in the PJM Control Area.
(k) The cost of Operating Reserves for synchronized condensing for each Operating Day shall be allocated and charged to each Market Participant in proportion to the sum of its (i) deliveries of energy to load in the PJM Control Area, served under Network Transmission Service, in megawatt-hours during that Operating Day; and (ii) deliveries of energy sales from within the PJM Control Area to load outside the PJM Control Area in megawatt-hours during that Operating Day, but not including its bilateral transactions that are dynamically scheduled to load outside the PJM Control Area pursuant to Section 1.12.
(l) For any Operating Day in either, as applicable, the Day-ahead Energy Market or the Real-time Energy Market for which, for all or any part of such Operating Day, the Office of the Interconnection: (i) declares a Maximum Generation Emergency; (ii) issues an alert that a Maximum Generation Emergency may be declared ("Maximum Generation Emergency Alert"); or (iii) schedules units based on the anticipation of a Maximum Generation Emergency or a Maximum Generation Emergency Alert, the Operating Reserves credit otherwise provided by Section 3.2.3.(b) or Section 3.2.3(e) in connection with marked-based offers shall be limited as provided in paragraphs (n) or (m), respectively. The Office of the Interconnection shall apply provide timely notice on its internet site of the commencement and termination of any balancing Operating Reserve credits allocated pursuant to this Section 3.2.3(b) to real-time deviations from day-ahead schedules or real-time load share plus exports, pursuant to Section 3.2.3(pof the actions described in clause (i), depending on whether the balancing Operating Reserve credits are related to resources scheduled during the reliability analysis for an Operating Day(ii), or during (iii) of this paragraph (l) (collectively referred to as "MaxGen Conditions"). Following the actual Operating Day.
(i) For resources scheduled by the Office posting of notice of the Interconnection during the reliability analysis for an Operating Daycommencement of a MaxGen Condition, the associated balancing Operating Reserve credits shall be allocated a Market Seller may elect to submit a cost-based on the reason the resource was scheduled according to the following provisions:
(A) If the Office offer in accordance with Schedule 2 of the Interconnection determines during Operating Agreement, in which case paragraphs (m) and (n) shall not apply to such offer; provided, however, that such offer must be submitted in accordance with the reliability analysis deadlines in Section 1.10 for an Operating Day that a resource was committed to operate in real-time to augment the physical resources committed submission of offers in the Day-ahead Energy Market to meet the forecasted realor Real-time load plus Energy Market, as applicable. Submission of a cost-based offer under such conditions shall not be precluded by Section 1.9.7(b); provided, however, that the Market Seller must return to compliance with Section 1.9.7(b) when it submits its bid for the first Operating Reserve requirement, Day after termination of the associated balancing Operating Reserve credits, identified as RA Credits for Deviations, shall be allocated to real-time deviations from day-ahead schedulesMaxGen Condition.
(Bm) For the Real-time Energy Market, if the Effective Offer Price (as defined below) for a market-based offer is greater than $1,000/MWh, the Market Seller shall not receive any credit for Operating Reserves. If the Office Effective Offer Price is less than or equal to $1,000/MWh, the Market Seller shall receive credit for Operating Reserves determined in accordance with Section 3.2.3(e), subject to the limit on total compensation stated below. For purposes of this paragraph (m), the Interconnection determines Effective Offer Price shall be the amount that, absent paragraphs (l) and (m), would have been credited for Operating Reserves for such Operating Day pursuant to Section 3.2.3(e) divided by the megawatthours of energy offered during the reliability analysis hours that the offer is economic, plus the offer for an Spot Market Energy for the hours that the offer is economic. The hours that the offer is economic shall be the hours that the offer price for Spot Market Energy is less than or equal to the Real-time Price for the relevant generation bus. Notwithstanding any other provision in this paragraph, the total compensation to a Market Seller on any Operating Day that includes a resource was committed MaxGen Condition shall not exceed $1,000/MWh during the hours that the unit is economic, where such total compensation in each such hour is defined as the amount that, absent paragraphs (l) or (m), would have been credited for Operating Reserves for such Operating Day pursuant to maintain system reliabilitySection 3.2.3(e) divided by the number of hours that the offer is economic, plus the associated balancing Real-time Price for such hour, and no Operating Reserve credits, identified as RA Credits for Reliability, Reserves payments shall be allocated according to ratio share made for any other hour of real time load plus export transactionssuch Operating Day.
(Cn) For the Day-ahead Energy Market, if notice of a MaxGen Condition is provided prior to 12:00 noon on the day before the Operating Day for which transactions are being scheduled and the Effective Offer Price is greater than $1,000/MWh, the Market Seller shall not receive any credit for Operating Reserves. If notice of a MaxGen Condition is provided after 12:00 noon on the day before the Operating Day for which transactions are being scheduled and the Effective Offer Price is greater than $1,000/MWh, the Market Seller shall receive credit for Operating Reserves determined in accordance with Section 3.2.3(b), subject to the limit on total compensation stated below. If the Office Effective Offer Price is less than or equal to $1,000/MWh, regardless of when notice of a MaxGen Condition is provided, the Interconnection determines Market Seller shall receive credit for Operating Reserves determined in accordance with Section 3.2.3(b), subject to the limit on total compensation stated below. For purposes of this paragraph (n), the Effective Offer Price shall be the amount that, absent paragraphs (l) and (n), would have been credited for Operating Reserves for such Operating Day divided by the megawatt hours of energy offered during the reliability analysis Specified Hours, plus the offer for an Spot Market Energy during such hours. The Specified Hours shall be the lesser of: (1) the minimum run hours stated by the Market Seller in its Offer Data; and (2) either (i) for steam-electric generating units and for combined-cycle units when such units are operating in combined-cycle mode, the six consecutive hours of highest Day-ahead Price during such Operating Day when such units are running or (ii) for combustion turbine units and for combined-cycle units when such units are operating in combustion turbine mode, the two consecutive hours of highest Day-ahead Price during such Operating Day when such units are running. Notwithstanding any other provision in this paragraph, the total compensation to a Market Seller on any Operating Day that includes a resource with a day-ahead schedule is required to deviate from that schedule to provide balancing Operating Reserves, the associated balancing Operating Reserve credits MaxGen Condition shall be segmented and separately allocated pursuant to subsections 3.2.3(b)(i)(A) or 3.2.3(b)(i)(B) hereof. Balancing Operating Reserve credits for such resources will be identified in the same manner as units committed not exceed $1,000/MWh during the reliability analysis pursuant to subsections 3.2.3(b)(i)(ASpecified Hours, where such total compensation in each such hour is defined as the amount that, absent paragraphs (l) and 3.2.3(b)(i)(B) hereof.
(ii) For resources scheduled during an Operating Dayn), the associated balancing Operating Reserve credits shall be allocated according to the following provisions:
(A) If the Office of the Interconnection directs a resource to operate during an Operating Day to provide balancing Operating Reserves, the associated balancing Operating Reserve credits, identified as RT Credits would have been credited for Reliability, shall be allocated according to ratio share of load plus exports. The foregoing notwithstanding, credits will be applied pursuant to this section only if the LMP at the resource's bus does not meet or exceed the applicable offer of the resource for at least four 5-minute intervals during one or more discrete clock hours during each period the resource operated and produced MWs during the relevant Operating Day. If a resource operated and produced MWs for less than four 5-minute intervals during one or more discrete clock hours during the relevant Operating Day, the credits for that resource during the hour it was operated less than four 5-minute intervals will be identified as being in the same category (RT Credits for Reliability or RT Credits for Deviations) as identified for the Operating Reserves for such Operating Day pursuant to Section 3.2.3(b) divided by the Specified Hours, plus the Day-ahead Price for such hour, and no Operating Reserves payments shall be made for any other discrete clock hours.
(B) If the Office hour of the Interconnection directs a resource not covered by Section 3.2.3(b)(ii)(A) hereof to operate in real-time during an such Operating Day, the associated balancing Operating Reserve credits, identified as RT Credits for Deviations, shall be allocated according to real-time deviations from day-ahead schedules.
(iii) PJM shall post on its Web site the aggregate amount of MWs committed that meet the criteria referenced in subsections (b)(i) and (b)(ii) hereof.
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