FERC Orders PJM, NYISO To Revise Pricing For Fast-Start Resources To Reflect More Costs
April 19,2019
The Federal Energy Regulatory Commission (FERC) has directed PJM Interconnection (PJM) and New York Independent System Operator (NYISO) to implement tariff changes to allow fast-start resources to reflect more costs in their prices
Specifically, the Commission is directing NYISO to make the following tariff revisions to its fast-start pricing practices:
• Modify its pricing logic to allow the start-up costs of fast-start resources to be reflected in prices;
• Relax the economic minimum operating limits of all fast-start resources, including dispatchable fast-start resources, by up to 100 percent for the purpose of setting price.
NYISO must make a compliance filing by December 31, 2019, and implement the tariff changes by December 31, 2020.
The Commission is requiring PJM to make the following tariff revisions:
• Implement software changes so that fast-start resources are considered dispatchable from zero to their economic maximum operating limits for the purpose of setting prices;
• Apply fast-start pricing to all fast-start resources;
• Alter its real-time energy market clearing process to consider fast-start resources in a way that is consistent with minimizing production costs;
• Restrict eligibility for fast-start pricing to fast-start resources that have a start-up time (including notification time) of one hour or less and a minimum run time of one hour or less;
• Include commitment costs in energy prices for fast-start resources in both the day-ahead and real-time markets;
• Implement its proposal to use lost opportunity cost payments to offset the incentive for over-generation or price chasing.
