PJM Fundamentals & Operations

October 8, 2020 | Online ::

1020-pjm-fundamentals

This course will explain the fundamentals of PJM — market mechanics, operations and price formation dynamics.  It will examine how key trends like renewables and shale gas penetration have shifted economic paradigms.  And it will consider the impacts of emerging trends like intelligent grids and energy storage on PJM market performance.

Context

PJM Interconnection is one of the world’s largest energy markets with operations in all or part of 13 states plus the District of Columbia.  The regional transmission organization includes more than 1,000 member companies serving 65 million customers through the operation of approximately 85,000 miles of transmission lines and 1,400 individual generators, all of which are managed and optimized on a minute-by-minute basis 24 hours a day, 365 days a year.

Learning Outcomes

• Explain the mechanics of PJM system dispatch, RTO operation, and price formation
• Compare market fundamentals in PJM to other U.S. RTOs
• Explore and anticipate the impacts of emerging trends like intelligent grids and energy storage on PJM market performance
• Apply information learned into actionable intelligence that will support effective decision-making that yields competitive advantage

Credits

EUCI is accredited by the International Accreditors for Continuing Education and Training (IACET) and offers IACET CEUs for its learning events that comply with the ANSI/IACET Continuing Education and Training Standard. IACET is recognized internationally as a standard development organization and accrediting body that promotes quality of continuing education and training.

EUCI is authorized by IACET to offer 0.7 CEUs for this event.

 

Instructional Methods

This program will use PowerPoint Presentations and group discussions. 

Requirements For A Successful Completion Of Program 

Participants must sign in/out each day and be in attendance for the entirety of the course to be eligible for continuing education credit. 

Thursday, October 8, 2020 : Eastern Time

8:45 – 9:00 a.m. :: Log-in

9:00 – 9:15 a.m. :: Overview and Introductions

9:15 am – 5:15 p.m. :: Program Content

(Includes breaks)

Market Survey and Organizational Drivers

• Cause for formation
  • The “big bang”
  • PA, NJ, MD, and expanded coverage area
• Internal organizational/operational structure
• Relationship w/ FERC, other ISO’s/RTO’s, and other parties
• Pre/Post ’03 Northeast blackout — reliability focus and operational changes
• Ex-market supply actions and other externalities
• Takeaways — definition and understanding of key nomenclature used (LMP, CP, etc)

PJM Market Functionality

• Market services
  • (DAM, RTM, ancillaries, capacity, FTR etc.)
• Explain in detail the working relationship w/ generators and transmission operators
  • Regulated vs. non-regulated
  • Participation by vertically integrated utilities
• Explain how PJM monitors and controls power flows to and from the grid
  • Spot, day ahead, contracts, tariffs, etc.
• Briefly explain the influence of technology and system modernization over time
• Introduction of capacity performance market and the shift from energy market + ancillary services
• Bidder behavior and market monitoring
  • Capacity, energy, ancillaries

12:30 – 1:15 p.m. :: Break for Lunch

Rapid Evolution of Market Fundamentals

• Making sense of two major paradigm shifts
  • The shale gas revolution
  • Renewables penetration
• Outcomes
  • Retirements
  • New market entry and the role of renewables state sponsorship
• Effects on pricing and system reliability
• Potential market distortions
  • Fast start pricing
  • Shortage pricing
  • FRR
  • State and other subsidies
  • Minimum Offer Price Rule (MOPR)
  • PURPA
  • Etc
• Understanding new build and retirement economics
  • Participation by infrastructure investors
  • Identification of new opportunities
  • Rapid turnover of existing assets

High Level RTO Comparison

• Focus on market fundamentals rather than mechanics

5:15 p.m. :: Program Adjournment

Dr. Todd Bohan, Director – Regulated Industries, FTI Consulting

Todd Bohan is a Director in FTI Consulting’s Power & Utilities group specializing in electric rate setting, regulatory advisory and energy procurement. Over the past 20 years, he has worked on a broad spectrum of energy and policy matters including utility rate cases, transmission and delivery service cost recovery, cost-of-gas adjustment, service quality and performance-based ratemaking, cost of capital, energy efficiency and competitive electric and natural gas supply.  Dr. Bohan has managed the energy procurement for electric default service and long-term renewable energy contracting for a multi-state utility. He has testified in a variety of regulatory proceedings and has a unique perspective having worked for regulated utilities, a state regulatory agency and a competitive energy supplier. In addition to his industry work, he has taught economics courses at the university level for the last 30 years.  Dr. Bohan earned a B.A. in Financial Economics from St. Anselm College, a M.A. in Economics from Clark University and a Ph.D. in Economics from Clark University.

Victoria Lorvig, Consultant – Power and Utilities Practice, FTI Consulting

Victoria Lorvig is a consultant in FTI’s Power & Utilities group, working in a variety of projects within the energy sector. With a master’s degree in environment and development from the London School of Economics, she brings a background in environmental policy and global economic perspective to the team. Since joining FTI, Ms. Lorvig has worked for various ISOs on topics including credit policy, capacity markets and financial transmission rights gaining applied knowledge of ISO operations and their variations between operators. In addition, she has worked on engagements including utility management audits, utility rate cases and energy finance matters.

Our courses are designed to be the best possible use of your valuable time – get the information you need to improve your position in the market in an interactive, dynamic format.

We will be using Microsoft Teams to facilitate your participation in the upcoming event. You do not need to have an existing Teams account in order to participate in the broadcast – the course will play in your browser and you will have the option of using a microphone to speak with the room and ask questions, or type any questions in via the chat window and our on-site representative will relay your question to the instructor.

• You will receive a meeting invitation will include a link to join the meeting.
• Separate meeting invitations will be sent for the morning and afternoon sessions of the course.
  • You will need to join the appropriate meeting at the appropriate time. 
• If you are using a microphone, please ensure that it is muted until such time as you need to ask a question.
• The remote meeting connection will be open approximately 30 minutes before the start of the course. We encourage you to connect as early as possible in case you experience any unforeseen problems.

REGISTER NOW FOR THIS EVENT:

PJM Fundamentals & Operations

October 8, 2020 | Online

Your registration may be transferred to a member of your organization up to 24 hours in advance of the event. Cancellations must be received on or before September 04, 2020 in order to be refunded and will be subject to a US $195.00 processing fee per registrant. No refunds will be made after this date. Cancellations received after this date will create a credit of the tuition (less processing fee) good toward any other EUCI event. This credit will be good for six months from the cancellation date. In the event of non-attendance, all registration fees will be forfeited. In case of conference cancellation, EUCIs liability is limited to refund of the event registration fee only. For more information regarding administrative policies, such as complaints and refunds, please contact our offices at 303-770-8800