Committees & Groups

Issue Details

Opportunity Cost Calculator

The current rules pertaining to the calculation of costs used in cost-based offers into the energy market allow Market Sellers to include an opportunity cost under certain conditions, such as environmental limitations. PJM developed an opportunity cost calculator, which is included in Markets Gateway, to enable Market Sellers to calculate an opportunity cost. Separately, Monitoring Analytics has developed its own opportunity cost calculator. There is some question about whether the two different opportunity cost calculators produce the same or comparable results and whether either calculator captures all scenarios. When PJM implemented CP, it established potential penalties for failure to deliver during emergencies. The opportunity cost calculators were not updated to reflect the penalty rates. As such, the opportunity cost calculator may be calculating an opportunity cost that is too low as the resource approaches a run hour limitation.

Issue Details

Strategic Focus Area: Markets
Issue Status: Awaiting Senior Committee Approval
Stakeholder Body: Market Implementation Committee
Stakeholder Process Status: Consensus
Issue Catalyst: Panda Power Funds
Date Created: 3.23.2017
MC Approval Date:
Target Completion Date: 4.30.2019
Actual Completion Date:
FERC Filing(s): Yes
Agreement Change(s): Operating Agreement
Manual Change(s): No
MC Annual Plan: 2019
Date Documents
9.27.2018 Meeting materials from the MRC meeting
Consent Agenda A - MRC Meeting Minutes 8.23.2018  PDF
8.7.2019 Meeting materials from the MIC meeting
Agenda  PDF
Agenda  DOC
Draft Minutes - MIC - 7.10.2019  PDF
Item 7A - Opportunity Cost Calculator  PDF
Item 7B - Opportunity Cost Matrix  XLS
Item 7B - Opportunity Cost Matrix - Post Meeting  XLS
8.23.2018 Meeting materials from the MRC meeting
Agenda  PDF
Agenda  DOC
Item 10 - Opportunity Cost Calculator  PDF
Item 10 - Opportunity Cost Calculator Rationale  PDF
PJM SVP Operations and Markets Stu Bresler Letter to Monitoring Analytics President Joe Bowring Regarding Opportunity Cost Calculator  PDF
9.25.2018 Meeting materials from the MIC Special Session: Opportunity Cost Calculator meeting
Agenda  PDF
Agenda  DOC
Item 2A - PJM Opportunity Cost Calculator Letter to MA  PDF
Item 2B - IMM Response to PJM Re: Opportunity Cost  PDF
Item 3A - MIC Operating Parameter Impacts on PJM OPC Results  PDF
Item 3B - IMM Opportunity Cost Presentation  PDF
Item 4 - Opportunity Cost Calculator Matrix - Post Meeting  XLS
9.11.2019 Meeting materials from the MIC meeting
Agenda  PDF
Draft Minutes - MIC - 8.7.2019  PDF
Item 2A - Opportunity Cost Calculator - Panda/Dominion Proposal  PDF
Item 2B - Opportunity Cost Calculator - PJM Proposal  PDF
Item 2C - Opportunity Cost Calculator Matrix  XLS
9.24.2018 Meeting materials from the MC Webinar meeting
Item 9A - MRC Report  PDF
4.19.2019 Meeting materials from the MIC Special Session - Opportunity Cost Calculator meeting
Agenda  PDF
Agenda  DOC
Draft Minutes - Special MIC - 3.20.2019  PDF
Item 2 - Opportunity Cost Calculator Matrix  XLS
7.10.2019 Meeting materials from the MIC meeting
Agenda  PDF
Item 7A - Opportunity Cost Calculator  PDF
Item 7B - Opportunity Cost Calculator Matrix  XLS
2.16.2018 Meeting materials from the MIC Special meeting
Agenda  PDF
Agenda  DOC
Item 2A2 - Opportunity Cost Calculator Options & Packages Matrix  XLS
9.23.2019 Meeting materials from the MC Webinar meeting
Item 7C - MIC Report  PDF
6.17.2019 Meeting materials from the MIC Special Session - Opportunity Cost Calculator meeting
Agenda  PDF
Agenda  DOC
Draft Minutes - MIC - 4.19.2019  PDF
9.27.2018 Meeting materials from the MC meeting
Agenda  PDF
Agenda  DOC
Item 3A - Opportunity Cost Calculator Draft - Operating Agreement Revisions  PDF
Item 3B - IMM Proposed Opportunity Cost Operating Agreement Revisions  PDF
Item 3B - Opportunity Cost Approach  PDF
Item 3B - Opportunity Cost Calculator - Alternative Draft Operating Agreement Revisions  PDF
10.25.2018 Meeting materials from the MC meeting
Agenda  PDF
Agenda  DOC
Item 1A - October 2018 OPC Calculator Market Seller Notice  PDF
Item 1A - Opportunity Cost Approach  PDF
Item 1B - Opportunity Cost Calculator Draft - OA Revisions  PDF
Item 1B - Opportunity Cost Calculator - IMM Alternative Proposed Draft - OA Revisions  PDF
Item 1B - Opportunity Cost Calculator - PJM Alternative Proposed Draft - OA Revisions  PDF
1.24.2019 Meeting materials from the MC meeting
Agenda  PDF
Agenda  DOC
Item 4A - Opportunity Cost Calculator - Manual 15 Revisions  PDF
Item 4A - Opportunity Cost Calculator Presentation  PDF
Item 4B - 10.2018 OPC Calculator Market Seller Notice  PDF
Item 4B - 10.2018 Opportunity Cost Approach  PDF
Item 4B - OPC Draft OA Revisions  PDF
Item 4B - OPC IMM Alternative Proposed Draft OA Revisions  PDF
Item 4B - OPC PJM Alternative Proposed Draft OA Revisions  PDF
5.9.2018 Meeting materials from the MIC Special Session: Opportunity Cost Calculator meeting
Agenda  PDF
Agenda  DOC
Item 2 - Dominion Dual Fuel Unit Opportunity Cost Issue  PDF
Item 3 - Opportunity Cost Calculator Options Packages Matrix  XLS
8.24.2018 Meeting materials from the MIC Special Session: Opportunity Cost Calculator meeting
Agenda  PDF
Agenda  DOC
Item 2A - Opportunity Cost Calculator Market Seller Notice  PDF
Item - 2B - Opportunity Cost Adder - Negative Values  PDF
Item 3 - Opportunity Cost Calculator Updated Matrix  XLS
12.6.2018 Meeting materials from the MC meeting
Consent Agenda Item A - MC Minutes 10.25.2018  PDF
3.20.2018 Meeting materials from the MIC Special meeting
Agenda  PDF
Agenda  DOC
Item 3 - Opportunity Cost Calculator Options & Packages Matrix  XLS
8.19.2019 Meeting materials from the MC Webinar meeting
Item 6C - MIC Report - August  PDF
Item 6C - MIC Report - July  PDF
2.21.2019 Meeting materials from the MC meeting
Agenda  PDF
Agenda  DOC
Item 2 - October 2018 - OPC Calculator Market Seller Notice  PDF
Item 2 - Opportunity Cost Approach  PDF
Item 2 - Opportunity Cost Calculator - Draft OA Revisions  PDF
Item 2 - Opportunity Cost Calculator - IMM Alternative - Proposed Draft OA Revisions  PDF
Item 2 - Opportunity Cost Calculator - PJM Alternative - Proposed Draft OA Revisions  PDF
1.16.2019 Meeting materials from the MIC Special Session - Opportunity Cost Calculator meeting
Agenda  PDF
Agenda  DOC
Item 2 - Opportunity Cost Calculator Problem Statement  PDF
Item 3 - Manual 15 - MMU Updates to OCC  PDF
Item 4 - Opportunity Cost Calculator Matrix  XLS
5.3.2017 Meeting materials from the MIC meeting
Item 2 - Draft Minutes - MIC - 4.12.2017  PDF
3.20.2019 Meeting materials from the MIC Special Session - Opportunity Cost Calculator meeting
Agenda  PDF
Agenda  DOC
Draft Minutes - MIC Special Session - 1.16.2019  PDF
Item 2 - Resource Limitation Reporting  PDF
Item 2 - RPM Exceptions and Replacement Resources  PDF
Item 3 - Opportunity Cost Calculator Matrix  XLS
Manual 15 - OPC Immature Unit Language  PDF
5.23.2017 Meeting materials from the MIC - Special meeting
Agenda  PDF
Agenda  DOC
Item 2 - Opportunity Cost Calculator - Problem Statement & Issue Charge  PDF
Item 3 - Opportunity Cost Calculator - PJM Education Session  PDF
Item 4 - Opportunity Cost Calculator - MMU Education Session  PDF
Item 5 - Post-Meeting - Opportunity Cost Calculator - Interest Identification  XLS
Date Type Documents
There are no governing documents currently associated with this issue