Committees & Groups

Issue Details

Balancing Operating Reserve Netting Rules

Under the current rules for Balancing Operating Reserve (BOR) deviation calculations, deviations are netted by transaction type (INC, DEC, import, export, internal bilateral purchase or sale) at the location where there transaction occurred (ie Hub, Zone, Interface, Aggregate, bus). This rule was retained on a locational basis when the package of BOR changes was implemented in December of 2008 in order to recognize that deviations at differing locations on the system can impact BOR costs. PJM has identified and documented activity by market participants whereby Internal Bilateral Transactions (IBTs) may have been submitted in order to inappropriately avoid BOR charges. PJM believes the potential for using IBTs in this manner extends beyond the behavior that PJM has already identified. PJM therefore recommends that stakeholders revisit the netting rule and explore potential improvements to eliminate the potential for inappropriate use of IBTs.

Proposed Timeline

Issue initiated: 11.2.2011
Work begins: TBD
Target Completion: TBD
Actual Completion: TBD

Issue Details

Stakeholder Body Market Implementation Committee
Subject Matter Expert Horning, Lynn Marie
Problem Statement/
Issue Charge First Read
11.1.2011
Issue Catalyst Issue identified by PJM and MMU.  
Issue Status Closed
Manual Changes No
Agreement Changes Open Access Transmission Tariff, Operating Agreement
  • Stakeholder Process Step

  • Completed Approved
  • Completed Education
  • Completed Interest
  • Completed Design
  • Completed Options
  • Completed Packages
  • Completed Consensus
  • Completed Review
  • Completed Completed