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Q1: How and why will the Zonal EDC De-Ration Factors be applied?
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A1: Implementation of Marginal Losses creates potential for double counting of losses because a) EDCs gross up the derived loads measured at individual retail meters to account for losses based on State-filed retail rates; and b)PJM Settlement calculations now account for losses using the marginal loss component of LMP. To address these issues, hourly EDC Loss De-ration Factors will be computed to de-rate the loss-loaded schedules submitted in eSchedules by the amount of losses included in the marginal loss component of the LMP. Loads will be reduced based on a hourly EDC Loss Deration Factor determined by state-estimated losses. The factor is then used to de-rate loss-loaded schedules as an alternative to re-filing state tariffs that include a loss loading factor.
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Q2: How will Demand Side Response programs be affected?
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A2: Gross-up factors for reductions under the PJM Demand Response Programs will need to be adjusted by the same factor as load carve-outs.
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Q3: Do the hourly Zonal EDC De Ration Factors change after the Load Reconciliation data is submitted?
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A3: No. The Zonal EDC De Ration Factors are based on the MW quantity of losses on facilities in the PJM model as a percentage of the total revenue quality metered load in the zone. These values would not change based on the entities within the zone who actually wind up with the load responsibility.
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Q4: What do we do if the de-rated load turns out to be less than the true metered load? i.e. if the EDC loss deration factor that we apply is greater than the original gross-up that the EDC applied.
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A4: The de-ration factor will not change based on the results of the calculation. The Zonal EDC De Ration Factors is not capped based on the EDC gross-up quantity.
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Q5: When will we begin posting of the Zonal EDC De Ration Factors prior to 6/1/07?
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A5: The Zonal EDC De Ration Factors will be calculated on an hourly basis from the actual metered load for the zone and the state estimator losses for each hour. Therefore, it is not possible to post them ahead of time. However, zonal estimates of these quantities are posted on the Marginal Loss Web site based on historical data. The MSWG has requested sample data showing the EDC loss amounts from the SE and the resulting Zonal EDC De Ration Factors, and this will be provided at MSWG in the March/April timeframe.
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Q6: If there is a difference in load between the PJM calculated value and the EDC value submitted in eMTR, how is this handled?
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A6: PJM will use the eMTR calculated load for the EDC in the original energy market settlements. The EDC-submitted load value is only used for determining future peak load quantities for transmission planning, network service billing, and capacity obligations.
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Q7: How will the Transmission Loss Surplus be allocated?
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A7: Implementation of Marginal Losses results in a surplus of loss charges collected. This surplus is allocated to Transmission Users based on load plus exports ratio shares.
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Q8: Will there be a separate line item in the invoice for Marginal Losses and the allocation of the surplus?
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A8: Yes – there will be a separate line item in the invoice for Transmission Losses and the allocation of the over-collection.
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Q9: Is the Total Loss Surplus calculated hourly or monthly?
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A9: The Total Loss Surplus is calculated hourly, and billed monthly.
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Q10: When will the PJM Mid-Atlantic 500 kV losses be available to the EDCs?
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A10: The 500 kV losses should be available to the EDCs through eMTR within several minutes of the eMTR deadline.
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Q11: Why are only external tie meter errors allocated to all LSEs and not internal or generator meter errors?
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A11: External tie meter errors impact the inadvertent interchange values. Inadvertent interchange will now be allocated to all LSEs, so it made sense to include external tie meter errors as they are related. Internal meter errors and generation meter errors will still be allocated to the EDCs. If the stakeholders desire the internal tie and generation meter errors be allocated directly to the LSEs, they should bring it up at the Market Settlement Working Group as a possible future enhancement. Note: This change is not related to Marginal Loss implementation.
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Q12: What changes are being made to eMKT for Marginal Losses?
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A12: The marginal loss effect will now be included into the Day-Ahead formulation. In eMKT, components (Total LMP, Loss Price, and Congestion Price) of Day-Ahead LMPs will be posted in the reports. There will be modifications to XML queries to download all three LMP components.
It is important to note, that although there will be no screen changes in eMKT, Demand Bids submitted by participants should NOT reflect losses.
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Q13: Will PJM be making dummy reports available through eSchedules for companies to test their revised XML capabilities prior to the Marginal Loss Implementation?
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A13: This was not planned, but the MSWG will be addressing requests for specific sample reports for testing purposes at their upcoming meeting. Also, note that eSchedules does not have XML capability, so I assume that they are referring to CSV downloads via browserless interface.
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Q14: Can PJM provide a chart showing when the timing of when the revised reports are available (monthly, daily, inter-month) and when the new data (i.e. EDC Loss Deration factor, Derated Load, etc) will be available?
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A14: We will try to put something together for the upcoming MSWG meeting.
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Q15: How will FTRs be adjusted if Marginal Losses are implemented in the middle of a planning year?
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A15: FTRs will not be adjusted if Marginal Losses are implemented in the middle of a planning year. FTR settlements will be based on the congestion component of the LMP.
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Q16: To what extent will the implementation of Marginal Losses impact the FTR/ARR allocations? Will participants get fewer amounts of FTRs? Will it impact the Simultaneous Feasibility Test (SFT)?
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A16: The implementation of Marginal Losses will not impact the FTR/ARR allocation or the SFT.
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Q17: How will capacity obligations be affected?
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A17: The calculation method for capacity obligations will not change as a result of marginal loss implementation.
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Q18: How will Marginal Losses be accounted for in the Regional Transmission Expansion Planning Process (RTEP)?
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A18: The RTEP process looks at demand regardless of whether it is load or losses. Therefore, RTEP is currently accounting for losses and will do so in the future. The amount of losses they account for may reduce with the implementation of Marginal Losses due to the more efficient dispatch.
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Q19: How will grandfathered transactions be affected?
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A19: To the extent a Grandfathered contract is currently exempt from loss charges (i.e. – the 2.5 or 3% gross-up of the scheduled MW quantity), it will be exempt from loss LMP differences when PJM moves to marginal loss pricing.
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Q20: Can we see the results for West Hub?
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A20: No. The MAPS MW application utilized to do the 2005 LMP simulations does not contain the PJM hub, aggregate, interface, etc. definitions.
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Q21: What defines GPUE & GPUW? Specifically where is JCPL?
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A21: JCPL is in GPUE. Penelec is in GPUW, and MetEd is split with the Eastern Division of MetEd in GPUE and the Lebanon division of MetEd in GPUW.
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Q22: Can PJM consider doing a forward-looking simulation (ie Summer 07), since these results are somewhat stale?
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A22: No. The simulation results would not change appreciably given the relatively consistent state of the network model over the last couple years. That is, there hasn’t been the kind of backbone transmission upgrades that would significantly alter the results.
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Q23: Does PJM have an estimate on the total loss MW reduction in the RTO at peak conditions (or average for the year) based on the ML implementation?
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A23: No.
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Q24: How are the percentage factors for scaling down fixed demand bids being determined for the Day-Ahead Market Trials?
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A24: The current demand bids in production have loss estimated in their values. For the Day-Ahead Market Trial, PJM has been using an estimated percentage to scale down fixed demand bids. The scaling factor is based on PJM’s estimation of that day's dayahead model. During the Market Trial the estimated scaling factor may vary from day to day.
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Q25: In the Day-Ahead Market Trial solution, does total generation committed exceed total Day-Ahead Demand? Specifically, does Generation Committed equal Total DA Demand plus System Losses Implied by the System solution?
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A25: Yes. Generation, Load, virtual bids and offers, transactions and loss will be automatically balanced in the algorithm.
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Q26: In the current DA Market solutions, does Generation exactly equal Day- Ahead Demand (since Day-Ahead Demand is the net of all demand in PJM)?
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A26: Yes. Generation, Load, virtual bids, transactions will be always balanced. We are considering loss in the power balance. But, loss is estimated into the load bids now.
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Q27: Will the Losses be calculated in order to carry out economic dispatch or will it be calculated post-dispatch?
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A27: PJM will apply Marginal Loss in the process of commitment, dispatching and pricing. Real-time penalty factors are calculated based on the real-time SE solution. And Day-Ahead penalty factors are based on the Day-Ahead model.
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Q28: Second, when understanding demand in the Day-ahead and in the Realtime, is a losses component already taken into account (as in an assumed 5% loss) or will the procedure be changed?
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A28: PJM will be de-rating real-time load responsibilities hourly based on that hour’s ratio of state-estimated transmission losses vs. the total zonal load. Your Day-Ahead demand bids should also exclude losses based on the load server’s best guess at losses.
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Q29: My understanding is that PJM is going to select certain Day-Ahead operations and re-run the Day-Ahead Market with marginal losses included and post those results. My question is has this process begun? and if not when? and how will we be notified?
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A29: Yes, PJM is going to re-rerun certain DA markets with marginal losses included in those results.
We will post notification to all market participants via eSuite messaging and eMKT and various PJM majordomos when we plan on generating and posting these results in the PJM sandbox environment.
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