in News Departments > Policy Watch
print the content item

PJM Interconnection has implemented its new performance-based regulations - a measure PJM says will align compensation with actual performance for resources that provide regulation service.

Regulation service - a separate market from energy and capacity - corrects for short-term changes in electricity use that might affect the stability of the power system.

"This new compensation structure creates greater incentive compensation for high-performing existing resources, and incentive for development of new, fast-responding technologies - such as batteries or flywheels - to participate in this market," says Andrew L. Ott, senior vice president at PJM Markets. "Ultimately, as the actual performance of regulation providers is better matched with the amount of resources needed, the system should realize greater efficiency and savings."

PJM uses a variety of resources to meet frequency-regulation needs. These resources differ in the speed in which they can increase and decrease their production, and differ in the accuracy of their response to the dispatch signal. Prior to this new structure, the regulation market did not distinguish between various levels of performance, and all resources were paid the same if they met minimum performance standards, PJM explains.

PJM also has implemented a structure for shortage pricing that establishes new rules for setting prices when PJM is operating at or close to a shortage of operating reserves. PJM says it seeks to have enough energy reserves to handle the loss of the largest generating unit on the system at the time.



Hse SandyHook
Latest Top Stories

DOE Report: U.S. Wind Power Prices Reach All-Time Low

According to the U.S. Department of Energy (DOE), wind power continues to play a larger role in the U.S.' energy mix and is the cheapest it has ever been in the country.


Survey Reveals What U.S. Consumers Expect From Their Utilities

GE's new survey measures Americans' views on the state and future of the grid, as well as how much extra consumers would be willing to pay for better power reliability.


How A GIS Can Help Utilities Address The Aging Workforce And Capitalize On Data

Baby Boomers, whose experience and know-how have served the utility industry so well for decades, are retiring. The author suggests utilities can use a geographic information system (GIS) to fill in resultant knowledge gaps.


Sensus Smart Meters Tied To More Overheating Incidents And Fires

SaskPower is investigating two new meter failures, and Portland General Electric is working to replace 70,000 Sensus units amid fire concerns.


SaskPower Halts Smart Meter Installations Following Fires

The Canadian utility has suspended its smart meter deployment as it investigates half a dozen fires associated with the meters.

S&C Electric_id176
edf_id180