2009 State of the Market Report
Finally, the Midwest ISO and PJM have recently responded to a number of past recommendations which should improve the performance of the JOA process in 2010. We recommend the following additional changes to improve the market-to-market process:
The Midwest ISO should institute a process to monitor more closely the information exchanged with PJM to quickly identify when the process is not operating correctly.
The Midwest ISO should discontinue the constraint relaxation algorithm, even on market- to-market constraints that cannot be resolved by the monitoring RTO.
The RTOs should work together to identify any other modeling parameters, provisions, or procedures that may be limiting PJM’s relief.
The RTOs should clarify the JOA in the following specific areas:
Use of marginal value limits;
Pre-positioning on coordinated constraints;
Use of proxy flowgates;
Obligation to activate a coordinated constraint;
Obligation to test new constraints; and
Flowgate definitions and the thresholds used to identify new coordinated
We continue to recommend that the RTOs expand their market-to-market process to
optimize interchange between markets.