Committees & Groups

Issue Details

Consistency of Energy-Related Opportunity Cost Calculations

Energy-related Opportunity Cost is revenue not earned by dispatchable resources because their energy output was reduced at the direction of PJM dispatch. Currently, Opportunity Cost is calculated differently when utilized for different purposes in various parts of the Tariff and Manuals. PJM staff recommends that stakeholders consider unifying the energy-related Opportunity Cost calculations throughout the PJM market rules such that it is calculated consistently across its various purposes. As PJM’s market rules have evolved, it has been necessary to determine a resource’s energy-related Opportunity Cost for various purposes. As each such occasion has occurred, the energy-related Opportunity Cost calculation was developed without regard to consistency. PJM staff believes that PJM’s market rules would benefit from such consistency.

Proposed Timeline

Issue initiated: 3.7.2012
Work begins: TBD
Target Completion: TBD
Actual Completion: TBD

Issue Details

Stakeholder Body Market Implementation Committee
Subject Matter Expert Keshavamurthy, Bhavana
MRC Approval Date 12.20.2012
Problem Statement/
Issue Charge First Read
2.17.2012
Issue Catalyst Monitoring Analytics and PJM
Issue Status Closed
Manual Changes No
  • Stakeholder Process Step

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