PJM Interconnection and the New York Independent System Operator (NYISO) say they have successfully began jointly managing transmission limits that occur near the "seams" between their regions. According to the grid operators, coordination between the two markets will increase the efficiency and lower the costs of electric transmission congestion management.
Congestion occurs when limits on transmission lines restrict the amount of power that can flow. In response, grid operators typically increase or decrease output from generators. This joint coordination allows the most cost-effective generator - whether in the New York or PJM region - to be adjusted to address the constraint, PJM and NYISO add.
The two grid operators say this market-to-market coordination offers lower overall congestion costs for consumers, more consistent prices across the two wholesale electricity markets because prices at the borders between them are expected to come together more closely, and greater reliability because a broader pool of resources is available.
“This is an important step forward for regional efficiencies and, most importantly, for reliability that benefits both our markets and the consumers we serve,” says PJM President and CEO Terry Boston. “We appreciate the cooperative relationship with the New York ISO and the support of stakeholders of both organizations that got us to this successful implementation.”
In October 2012, NYISO and PJM announced a long-term approach to optimize the flow of electricity across their common border and reduce threats to reliability that also includes coordinating planning processes to facilitate efficient transmission investments; deploying smart grid technologies that maintain system balance through the use of robust data, communications and automated systems; and developing a shared understanding of regional natural gas delivery constraints for power generation.
