Dive Brief:
- Generators in the PJM Interconnection are prepared for the winter ahead, having learned from last year's Polar Vortex and market challenges, according to PJM President and CEO Terry Boston.
- Transmission enhancements in the region have bolstered PJM's ability to move power, and with more than 30 gas pipelines in the region and Marcellus Shale access, the grid operator does not believe fuel supply will be an issue during the colder months.
- But the 2015-2016 winter could be a challenge as new U.S. Environmental Protection Agency rules going into effect next year will shutter about 8,000 MW of coal-fired generation.
Dive Insight:
It was only in January — just less than a year ago — that temperatures in PJM's territory dropped to -15 degrees Fahrenheit across two days and stretched the region's power supply to the edges. At the height of the Polar Vortex, PJM reported a forced outage rate of 22% with about 40,200 MW offline.
But Platts is reporting that PJM officials are confident they are prepared for the winter ahead. The region's transmission and fuel supply networks are strong, and rule changes should help ensure diverse generation resources are online.
In the spring of next year, however, the EPA's Mercury and Air Toxics Standards rule will go into effect, taking offline about 8,000 MW of coal-fired power. PJM will request plant owners seek reliability-must-run contracts to keep operating during the winter of 2015-2016. Stressing that the grid operator prefers market solutions, PJM CEO Boston said the reliability contracts "will not be a big number."
