The Federal Energy Regulatory Commission acted last month to promote greater coordination of market operations by PJM Interconnection, L.L.C. (PJM) and Midcontinent Independent System Operator, Inc. (MISO) by directing staff to participate in the regional transmission operators’ (RTOs’) meetings to address seams issues.
In June 2012, the Commission sought comments on whether existing rules on transfer capability act as barriers to the delivery of generation capacity between the PJM and MISO markets. Following presentations on the issue at FERC’s June 2013 open meeting, PJM submitted an informational filing that included the results of a stakeholder survey ranking the relative priority of 15 market initiatives. The June 2013 filing identified as high priorities: inter-RTO data exchange and transparency, transmission and generation outage coordination, and day-ahead market coordination.
In a September 2013 filing, the RTOs set out a work plan for addressing the various initiatives. Under the work plan, PJM and MISO will aim to improve data exchange and transparency by continuing to publicly post information requested by stakeholders and by providing information about the operation of the market-to-market coordination process. The plan also describes efforts to better coordinate day-ahead market operations, as well as the RTOs’ intent to consider revisions to the day-ahead firm flow entitlement exchange provisions in their existing joint operating agreement.
As for cross-border capacity transactions, the RTOs plan to complete a series of deliverability analyses by March 31, 2014, and they will work to develop any necessary proposals by the following fall.
Today’s order acknowledges the time and effort of the RTOs and their stakeholders, and states that staff’s participation in future meetings will help FERC monitor the RTOs’ progress on the market initiatives. The order also establishes a new proceeding to reflect the broader scope of issues identified in the June and September filings.