1.2 Intro to Markets

Question 1

Operating Reserve

Answer 1

Generation or load reduction that can be fully utilized within 30 min of request.

In excess of forecast hourly integrated PJM RTO load.

Question 2

Primary Reserve -

NERC equivalent & time? PJM time?

Answer 2

NERC Contingency Reserves (available within 15 min)

PJM Primary Reserve available w/in 10 min.

Question 3

Primary Reserve - 2 categories?

Answer 3

Synchronized

Non-synchronized (quick start)

Question 4

Synchronized Reserves examples

Answer 4

• Increased output from synched generator
• reduction in load of pumped hydro synched in pumping mode
• maximum output from synchronous condenser

Question 5

Quick Start (non synched) Reserves examples

Answer 5

• interruptible demand resources
• run of river hydro
• industrial combustion turbines
• diesels

Question 6

Supplemental Reserve

Answer 6

avail w/in 10-30 min

does not need to be synchronized

Question 7

Reliability Pricing Model (RPM)

Answer 7

long-term price signal for capacity resources and LSE’s unforced capacity obligations

Question 8

Financial Transmission Rights (FTR)

Answer 8

entitle to a stream of revenues based on hourly energy price difference across transmission path in Day-Ahead market.

Assists in hedging price risk when delivering energy

Question 9

What are all the PJM markets today? (6)

Answer 9

• Day-ahead energy
• Real-time energy
• Reliability pricing model (RPM)
• Regulation
• Reserve
• FTR

Question 10

What is the regulation market?

Answer 10

Energy under automatic control that can respond w/in 5 min to freq. changes.
- corrects for small load changes.