PJM2014www.pjm.com Winter 2014 Overview & Recent and
Upcoming Market Rule Changes Adam Keech Director, Market
Operations
Slide 2
PJM2014 2 www.pjm.com Who Are We? 6/03/20142 PJM2014 13 States
+ DC Over 60 Million People Served 158,448 MW Peak Load 158,448 MW
Peak Load 185,600 MW Installed Capacity
Slide 3
PJM2014www.pjm.com Winter 2014
Slide 4
PJM2014 4 www.pjm.com Polar Vortex Source: University of
Illinois at Urbana-Champaign
Slide 5
PJM2014 5 www.pjm.com Maximum Winter Peak Demands
Slide 6
PJM2014 6 www.pjm.com January 7 Load Compared to Typical
January Day
Slide 7
PJM2014 7 www.pjm.com Interchange January 7
Slide 8
PJM2014 8 www.pjm.com Real-Time and Day-Ahead Prices January
7
Slide 9
PJM2014 9 www.pjm.com Minimum Temperatures January 2014
Columbus, Philadelphia, Chicago and Richmond
PJM2014 13 www.pjm.com Gas Prices (Market East) January
2014
Slide 14
PJM2014 14 www.pjm.com PJM Load-Weighted LMPs January 2014
Slide 15
PJM2014 15 www.pjm.com Improve generator availability and
performance during extreme weather events, Implement performance
verification or testing of generation in advance of winter
operations, Continue to engage in discussions with industry and
regulators to improve natural gas and electricity market alignment,
Key Recommendations
Slide 16
PJM2014 16 www.pjm.com Key Recommendations (cont.) Implement
market mechanisms that encourage better generator availability,
such as incentives for ensuring fuel availability or dual-fuel
capability, and Review the cost allocation for uplift charges and
investigate a mechanism to allocate uplift costs during emergency
operations that minimizes volatility.
Slide 17
PJM2014www.pjm.com Recent and Upcoming Market Rule Changes
Slide 18
PJM2014 18 www.pjm.com Prior to Winter 2014 Uplift cost
allocation Energy Market Uplift Senior Task Force Stemming from
Winter 2013 Reserve Pricing and Interchange Volatility Energy and
Reserve Pricing and Interchange Volatility Stakeholder Group PJM
proposing: 30 minute reserve market Economic clearing of
interchnage Stemming from Summer 2013
Slide 19
PJM2014 19 www.pjm.com Prior to Winter 2014 - Capacity Market
Capacity Import Limits Filed and approved Implemented for 2017/2018
BRA Operational DR Filing Filed and approved by the FERC Most
components effective for Summer 2014 Replacement Capacity Filing
Filed and rejected by FERC FERC acknowledges existence of problem
Set for technical conferences
Slide 20
PJM2014 20 www.pjm.com From Winter 2014 Offer cap review
Currently $1,000/MWh which was exceeded during Winter 2014 Cap
Review Senior Task Force Gas Scheduling Currently at the Operating
Committee Energy and Capacity Market Offer Flexibility Intra-day
offers Capacity Senior Task Force