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PJM Interconnection and the New York Independent System Operator (NYISO) are streamlining the flow of electricity across their mutual borders and reducing energy production costs.
The two grid operators implemented a coordinated transaction scheduling (CTS) system on Nov. 4 that improves the scheduling of wholesale electricity sales between New York State and the PJM region where they border in Pennsylvania and New Jersey. This enables market participants to access the least-cost source of power within the two regions and helps lower the combined energy production cost of the two systems.
CTS will enable PJM and the NYISO to more efficiently use the transmission lines connecting the two regions. The new system also minimizes counterintuitive power flows by explicitly incorporating projected price differences between the two markets into interregional scheduling decisions.
By coordinating energy flow schedules, CTS will provide benefits to consumers in New York and the 13 states served by PJM. Estimates, including one from the market monitor for NYISO, found that CTS potentially could reduce production costs between $9 million and $26 million annually.
The Federal Energy Regulatory Commission (FERC) approved the tariff revisions necessary for implementation of CTS in March 2014. CTS is among the Broader Regional Markets initiatives that the NYISO, PJM and other grid operators have undertaken to improve interregional scheduling practices and power flows.
Initiatives the NYISO and PJM already have completed to improve market efficiency at their common border include intra-hour transaction scheduling and coordinating their operations to cost-effectively solve transmission system constraints. The implementation of CTS marks the completion of the planned Broader Regional Markets initiatives identified in January 2010.
The NYISO is a not-for-profit corporation responsible for operating the state’s bulk electricity grid, administering New York’s competitive wholesale electricity markets, conducting comprehensive long-term planning for the state’s electric power system and advancing the technological infrastructure of the electric system serving the Empire State.
PJM Interconnection, founded in 1927, ensures the reliability of the high-voltage electric power system serving 61 million people in all or parts of Delaware, Illinois, Indiana, Kentucky, Maryland, Michigan, New Jersey, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, West Virginia and the District of Columbia. PJM coordinates and directs the operation of the region’s transmission grid, which includes 62,556 miles of transmission lines; administers a competitive wholesale electricity market; and plans regional transmission expansion improvements to maintain grid reliability and relieve congestion.