Dive Brief:
- PJM Interconnection has signaled it may propose changes to capacity market rules in response to problems exposed by extreme winter weather this year.
- Penalties and incentives for capacity resources during peak periods are insufficient, according to a "problem statement" the system operator released.
- PJM is currently working on a paper with potential solutions to the problem and aims to establish new rules by November.
Dive Insight:
On January 6 and 7, the Polar Vortex sent temperatures plummeting in PJM's territory. With lows in major cities dipping down to -15 degrees Fahrenheit, customers cranked up the heat and PJM's system was strained.
At the height of the Polar Vortex, around 7 p.m. on January 7, PJM reported a 22% forced outage rate — more than three times its 7% historical average. At the time, the operator had 40,200 MW offline because of forced outages.
An analysis of the forced outages by primary fuel type revealed gas-fired generators accounted for 47% of the offline power and coal accounted for 34%. Plants had to deal with frozen equipment, fuel delivery issues, frozen coal and failing emissions equipment.
But some see the potential new rules as a way of saving an ailing coal industry. "They are moving a key subsidy toward coal plants in a manner that would effectively neutralize the effect of the EPA plan," Tom Matzzie, founder and CEO of Ethical Electric, told Greentech Media.
