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2009 State of the Market Report

Transmission Congestion

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:

    • 1.

      Use of marginal value limits;

    • 2.

      Pre-positioning on coordinated constraints;

    • 3.

      Use of proxy flowgates;

    • 4.

      Obligation to activate a coordinated constraint;

    • 5.

      Obligation to test new constraints; and

    • 6.

      Flowgate definitions and the thresholds used to identify new coordinated

constraints.

  • We continue to recommend that the RTOs expand their market-to-market process to

optimize interchange between markets.

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