PJM Operations & Settlements Best Practices

February 19-20, 2025 | Baltimore, MD and Online :: Eastern Time

This EUCI instructional course covers the operations and settlements in the PJM market.  It illuminates how market participants can maximize the value of their assets (resources, loads, bilateral contracts).  It is an excellent training for generators, distribution utilities, independent power producers, transmission companies, financial traders and other market participants engaged in the never-ending quest to achieve optimum outcomes from their PJM operations.  Attendees will learn how to:

• Formulate unit offers and demand bids
• Use settlement results as a strategic tool to validate PJM settlement statements and invoices
• Identify settlement errors and submit settlement disputes
• Compute profit & loss metrics
• Provide feedback on the effectiveness of bidding strategies
• Minimize costs for serving loads in the various market mechanisms, including the energy market, FTR market, capacity and ancillary services market

Front office, back office and settlement staff working in the PJM market will want to register early for this EUCI training in the Baltimore Inner Harbour area, as in-person space is limited. 

Learning Outcomes

• Use profit & loss (P&L) metrics to provide feedback to traders
• Apply market simulation to illustrate settlements and P&L calculations
• Examine PJM bid-to-bill workflow
• Validate PJM settlement charge codes for resources
• Identify the most common causes for settlement disputes
• Arrange examples illustrating day-ahead and real-time settlement for generators
• List key factors influencing profits & losses
• Recognize DART P&L gains and leakages
• Demonstrate how to validate charges for virtual transactions
• Evaluate settlement results to compute profit & loss metrics and provide feedback to traders on bidding strategies
• Recognize how to use profit & loss metrics for operational feedback and what real-time desk procedures are needed to identify and correct operational problems

Wednesday, February 19, 2025 : Eastern Time

8:15 – 8:30  a.m. :: Online Log In

8:30 – 9:00 a.m. :: Overview & Introductions

9:00 – 10:30 a.m. :: Overview on PJM Market

• Key Features of PJM market
• Understanding PJM tariff
• Understanding PJM full network model and commercial model
• PJM Bids and Offers
• Reviewing Day-Ahead (DA) and Real-Time (RT) bidding workflows for PJM
• Understanding security-constrained unit commitment (SCUC) objectives for DA market and security-constrained economic dispatch (SCED) objectives for the RT market
• How does the two-step settlement work?
• Understanding congestion costs
• Why Use financial transmission rights (FTRs)?
• Reviewing PJM market statistics
• Benefits of PJM market
• Bid-to-Bill timeline and challenges

10:30 – 10:45 a.m. :: Morning Break

10:45 a.m. – 12:15 p.m. :: Uses of Nodal Locational Marginal Prices in Bidding & Settlement

• Using full network model to compute nodal locational marginal prices
• How are LMPs computed?
• Understanding 3 components of LMPs — energy, loss, congestion
• Understanding impacts of flowgates on congestion
• Can LMPs be negative?
• Day-Ahead settlement calculations
• Can you forecast LMPs?

12:15 – 1:00 p.m. :: Group Luncheon

1:00 – 2:45 p.m. :: Understanding PJM Bid-to-Bill Workflow

• Business objectives for settlement group
• PJM settlement calendar
• Understanding settlement statements and charge codes for PJM market
• Reviewing PJM settlement workflow
• Downloading settlement reports from PJM MSRS
• Why perform shadow settlement?
• Key functions of shadow settlement software
• What data do we need to validate PJM settlement?
• What are the most common causes for settlement disputes?
• Validating PJM weekly and monthly invoices

2:45 – 3:00 p.m. :: Afternoon Break

3:00 – 5:00 p.m. :: Validating PJM Settlement Charge Codes for Resources

• Reviewing PJM DA & RT charge codes for resources
• Examples illustrating day-ahead and real-time settlement for generators
• Understanding 3-part energy offers for resources
• Difference between cost-based, price-based, and parameter-limited offers
• Market principles behind operating reserve make-whole payments and charges
• Computing day-ahead operating-reserve make-whole payments for generators
• Who will pay DA & RT operating-reserve charges?
• Examples illustrating day-ahead and real-time settlement for generators
• Reviewing PJM DA & RT A/S codes for resources
• Results of PJM capacity auctions
• Understanding PJM settlement for resource adequacy

5:00 p.m. :: Course Adjourns for Day            

Thursday, February 20, 2025 : Eastern Time

8:15 – 8:30 a.m. :: Online Log In

8:30 – 10:15 a.m. :: Using Profit & Loss Metrics to Provide Feedback to Traders

• Using settlement and production-costing results to compute DA and DART profits & losses (P&L) for your resources
• Key factors influencing profits & losses
• Understanding DART P&L gains and leakages
• Using profit & loss metrics to provide feedback to traders on effectiveness of day-ahead and real-time bidding strategies
• Using profit & loss metrics to provide feedback to plant managers on plant performance
• Using profit & loss metrics to build key performance indexes

10:15 – 10:30 a.m. :: Morning Break

10:30 a.m. – 12:00 p.m. :: Validating Settlement Charge Codes for Loads

• List of settlement charge codes for loads
• Examples illustrating DA & RT settlement for loads
• Computing A/S charges for LSEs
• Validating charges for virtual transactions

12:00 – 12:45 p.m. :: Group Luncheon

12:45 – 2:30 p.m. :: Validating PJM ARR & FTR Charge Codes

• Key factors causing congestion in PJM
• Use FTR and ARR contracts to hedge against congestion
• How do you procure ARR and FTR contracts in PJM?
• Understanding ARR allocation process
• Understanding FTR annual and monthly auctions
• Reviewing PJM settlement charges for ARR and FTR contracts
• Evaluating benefits of FTR and ARR Contracts
• Reviewing congestion hedging strategies

2:30 – 2:45 p.m. :: Afternoon Break

2:45 – 4:00 p.m. :: Run Market Simulation to Illustrate Settlements and Profit & Loss Calculations

• Using settlement and production-costing results to compute DA settlements and profits & losses (P&L) for 3 market participants
• Using profit & loss metrics to provide feedback on effectiveness of bidding strategies
• Settlement forensics — where front and back offices meet

Round-Table Discussion

4:00 p.m. :: Course Adjournment

Khai Le, Senior Vice President, PCI Energy Solutions

Khai Le has five decades of experience working with market participants in RTO markets to deploy the PCI Suite to automate their bidding, scheduling, and settlement workflows.  He has conducted more than 700 seminars on market-based operations, bidding strategies, portfolio optimization, and shadow settlement for utilities and RTOs worldwide.  Mr. Le has authored some 100 technical papers on unit commitment, hydro-thermal coordination, emission dispatch, optimization of ancillary services, post analysis, and short-term planning. Five of his papers received prize awards.  Mr. Le received his BS from Harvey Mudd College and his MS from Carnegie Mellon University. He is a Fellow of the IEEE.

Justin Shearer, Vice President, PCI Energy Solutions

Justin Shearer actively participates in all phases of solution and business development, deployment, and consulting for market participants in North America. He has been deeply involved with power markets in the West – CAISO WEIM and SPP WEIS.  Mr. Shearer received both his BA and MBA from the University of Oklahoma.

Constellation Energy

1310 Point St

Baltimore, MD 21231

REGISTER NOW FOR THIS EVENT:

PJM Operations & Settlements Best Practices

February 19-20, 2025 | Baltimore, MD

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 January 17, 2025 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

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 1.4 CEUs for this event

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Requirements for Successful Completion of Program

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

Instructional Methods

Case studies and PowerPoint presentations will be used in this program. 

Upon successful completion of this event, program participants interested in receiving CPE credits will receive a certificate of completion.

Course CPE Credits: 16.0
There is no prerequisite for this Course.
Program field of study: Specialized Knowledge
Program Level: Basic
Delivery Method: Group Internet Based
Advanced Preparation: None

EUCI is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its web site: www.nasbaregistry.org

Who Should Attend

Individuals working in the following areas will benefit from attending this event: 

• Front-Office personnel who would like to maximize profits for their assets in the PJM market
• Back-office employees who need to understand the settlement rules for PJM market
• Power plant managers who would like to understand the impact of settlement on their plant profitability
• IT personnel who need to build the IT infrastructure to support the bid-to-bill workflow

Registration & Attendance Criteria

This course is open to utilities, power and energy industry operating companies (see above), consumer groups, project developers and regulators only.  Registrations from software vendors and others that do not meet these criteria – or that may be construed as a competitive conflict – will be evaluated on a case-by-case basis and may not qualify for attendance.  Any determination as to the fulfillment of a registration to attend this program shall reside solely with EUCI.  Questions regarding the application of this restriction can be addressed to [email protected].