PJM weighs new offer flexibility for generators
Washington, 20 March (Argus) — PJM Interconnection stakeholders will consider whether to give generators more flexibility in pricing energy in the day-ahead market so power plants could vary their offer prices each hour of the day.
The change would affect all generators but most directly affects gas-fired power plants. PJM’s existing rules requires generators to offer energy at a single price for the 24 hours covered in the day-ahead market, even if fuel prices during that period could change significantly. Natural gas often has high intraday price volatility, particularly during the switch to a new gas operating day at 9am CT.
The main electric grids in California, New England, New York, Texas and the US midcontinent have already started allowing generating resources to vary their prices during the day. PJM is the largest US electric grid but only recently started to let generators not committed in the day-ahead market to update their offers up to three hours in advance of the operating hour.