MTEP15 Chapter 8.1: Policy Studies – Interregional PJM

MTEP15 Chapter 8.1: Policy Studies – Interregional PJM

MISO and PJM Interconnection, a Pennsylvania-based regional transmission organization (RTO) that shares borders with MISO, concluded an 18-month MISO-PJM Joint Coordinated Planning Study in 2014 that looked at multiple futures and 80-plus major project proposals. While the joint study did not produce any actionable results, it identified additional areas for coordination.

For 2015, MISO and PJM agreed to focus their joint study on FERC Order 1000 compliance, a Quick Hits study, targeted coordinated studies and continuation of the interregional process enhancement review.

Quick Hits

Due to appreciable levels of market-to-market congestion, MISO and PJM decided to focus on resolving the historical congestion while helping to inform future metric and process enhancements. A near-term study to evaluate historical market-to-market congestion and find small but important fixes, dubbed Quick Hits, was introduced to stakeholders at the end of 2014.

For this study, MISO and PJM analyzed historically congested market-to-market flowgates. Flowgates with significant congestion — day ahead and balancing — in 2013 and 2014 were considered as well as market-to-market flowgates that caused Auction Revenue Rights infeasibilities. MISO and PJM worked to identify valuable projects on the seam. A valuable project would relieve known market-to-market issues; be completed in a relatively short time frame; have a quick payback on investment; and not be greenfield projects. MISO and PJM coordinated with facility owners to identify the limiting equipment and potential upgrades. Limited reliability and production cost analyses were used to confirm the projects’ effectiveness in relieving congestion.

The Quick Hit Study analyzed 39 market-to-market flowgates with $408 million of historical congestion between January 2013 and October 2014. The majority of the flowgates (22), accounting for $295 million of congestion, have planned or in-service MTEP or Regional Transmission Expansion Plan (RTEP) upgrades. The remaining flowgates had either no recent congestion or no recommended projects. The MISO-PJM Interregional Planning Stakeholder Advisory Committee (IPSAC) identified two potential Quick Hit projects for MISO and PJM to jointly evaluate.

  • Beaver Channel – Sub 49 161 kV SCADA Upgrade
  • Michigan City – LaPorte 138 kV Sag Remediation and CT Replacement

A key finding of the study was that most of the highest cost constraints already had an MTEP or RTEP project in the works. The RTOs will continue to track these projects to ensure the congestion is addressed.

The two potential projects addressing historical congestion were evaluated for approval and funding. The Beaver Channel – Sub 49 flowgate SCADA upgrade was placed in-service mid-year by the Transmission Owner. The current level of congestion seen in production cost models does not support incremental upgrades beyond the SCADA work, so no additional Quick Hit is recommended. MISO and PJM will continue to monitor the historical congestion on this flowgate.

The Michigan City – LaPorte Quick Hit project is not recommended at this time because the future congestion pattern is uncertain due to a new 138 kV substation that was recently placed in-service. The new station, a tap on the Michigan City – LaPorte 138 kV line, has additional 138 kV connectivity and changes the historical congestion flows, especially on Michigan City – LaPorte, during high West to East transfers. The IPSAC will continue to monitor the congestion in this area through the targeted study below.

Targeted Studies

Continuing on the Quick Hits work, MISO and PJM agreed to focus on smaller, targeted study areas to address seams issues. One such area is Southwest Michigan and Northern Indiana. MISO and PJM propose to evaluate the MTEP and RTEP projects in this area to determine whether the historical congestion, seen in the Quick Hits analysis, would be fully mitigated. This analysis will also evaluate the effect of expected operational reconfigurations on the performance of planned projects and whether additional solutions are needed.

Another targeted area is the Quad Cities. This study is primarily reliability driven but will include economic analysis and will determine if there are projects to supplement or replace three MTEP Appendix B projects at the border of Iowa and Illinois.

MISO and PJM aim to complete all targeted study analyses by the end of 2015. Potential projects identified will be recommended for further study in 2016 in the appropriate MTEP or RTEP process(es).

FERC Order 1000

On December 18, 2014, FERC conditionally accepted the MISO-PJM interregional FERC Order 1000 filing, subject to a further compliance filing date of July 31, 2015. FERC rejected MISO’s proposal to eliminate cost allocation for Cross-Border Baseline Reliability Projects. FERC also noted that MISO and PJM had not addressed how public policy projects would be coordinated and cost shared.

MISO, PJM, and their stakeholders collaboratively developed Joint Operating Agreement language to address all FERC compliance directives. MISO and PJM agreed to use an avoided cost methodology for cost sharing reliability and public policy interregional project types. Timely compliance filings were submitted by MISO and PJM on July 31, 2015.

IPSAC

In the second half of 2015, the MISO-PJM Interregional Planning Stakeholder Advisory Committee (IPSAC) continued discussions from 2014 on interregional metric and process enhancements. In this effort, MISO and PJM work with stakeholders to identify changes to lower or remove undue hurdles to approve interregional projects.