PJM Market Fundamentals, Operations and Value Dynamics
January 27-28, 2020 | Washington, DC
This course will explain the fundamentals of PJM — market mechanics, operations and price formation dynamics. It will examine developing policy and technology trends that have recently roiled certain market elements. And, it will illuminate what different members and market participants must evaluate to optimize their positioning in the multiple markets operated by the RTO.
PJM Interconnection is one of the world’s largest energy markets with operations in all or part of thirteen states plus the District of Columbia. The regional transmission organization includes more than 1,000 member companies serving 65 million customers through the operation of approximately 85,000 miles of transmission lines and 1,400 individual generators, all of which are managed and optimized on a minute-by-minute basis 24 hours a day, 365 days a year.
In recent years, the market has undergone profound changes in the structure of its market and in the economic fundamentals that drive outcomes. These changes, and the increasing complexity they bring, create uncertainties and risk but also opportunities for those participants who are well informed and well positioned to succeed.
- Review the history of the RTO and the rationale for its existence
- Explain the mechanics of PJM system dispatch, RTO operation, and price formation
- Assess the impacts of key trends like renewables and shale gas penetration that have shifted economic paradigms
- Compare market fundamentals in PJM to other U.S. RTOs
- Explore and anticipate the impacts of emerging trends like intelligent grids and energy storage on PJM market performance
- Apply information learned into actionable intelligence that will support effective decision-making that yields competitive advantage
EUCI has been accredited as an Authorized Provider by the International Association for Continuing Education and Training (IACET). In obtaining this accreditation, EUCI has demonstrated that it complies with the ANSI/IACET Standard which is recognized internationally as a standard of good practice. As a result of their Authorized Provider status, EUCI is authorized to offer IACET CEUs for its programs that qualify under the ANSI/IACET Standard.
EUCI is authorized by IACET to offer 1.0 CEUs for this event.
This program will use PowerPoint Presentations and group discussions.
Requirements For A Successful Completion Of Program
Participants must sign in/out each day and be in attendance for the entirety of the course to be eligible for continuing education credit.
Monday, January 27, 2020
8:00 – 8:30 a.m. :: Registration and Continental Breakfast
8:30 – 8:45 a.m. :: Overview and Introductions
8:45 – 9:45 a.m. :: Market Survey and Organizational Drivers
- Cause for formation
- The “big bang”
- PA, NJ, MD, and expanded territories
- Internal organizational/operational structure
- Relationship w/ FERC, other ISO’s/RTO’s, and other parties
- Pre/Post ’03 Northeast blackout — reliability focus and operational changes
- Ex-market supply actions and other externalities
- Takeaways — definition and understanding of key nomenclature used (LMP, CP, etc)
9:45 – 10:00 a.m. :: Morning Break
10:00 a.m. – 12:00 p.m. :: PJM Market Functionality
- Market services
- (DAM, RTM, ancillaries, capacity, FTR etc.)
- Explain in detail the working relationship w/ generators and transmission operators
- Regulated vs. non-regulated
- Participation by vertically integrated utilities
- Explain how PJM monitors and controls power flows to and from the grid
- Spot, day ahead, contracts, tariffs, etc.
- Briefly explain the influence of technology and system modernization over time
- Introduction of capacity performance market and the shift from energy market + ancillary services
- Bidder behavior and market monitoring
- Capacity, energy, ancillaries
12:00 – 1:00 p.m. :: Group Luncheon
1:00 – 3:00 p.m. :: Rapid Evolution of Market Fundamentals
- Making sense of two major paradigm shifts
- The shale gas revolution
- Renewables penetration
- New market entry and the role of renewables state sponsorship
- Effects on pricing and system reliability
- Potential market distortions
- Fast start pricing
- Shortage pricing
- State and other subsidies
- Understanding new build and retirement economics
- Participation by infrastructure investors
- Identification of new opportunities
- Rapid turnover of existing assets
3:00 – 3:20 p.m. :: Afternoon Break
3:20 – 4:45 p.m. :: High Level RTO Comparison
- Focus on market fundamentals rather than mechanics
4:45 p.m. :: Program Adjourns for Day
Tuesday, January 28, 2020
8:00 – 8:30 a.m. :: Continental Breakfast
8:30 – 10:00 a.m. :: Looking Forward
- Batteries – the next big change
- Smarter grids and the Utility of the Future
- Other fundamental drivers
- Mechanical issues related to price formation
- What needs to be enhanced and proposed solutions
- Key hearings/decisions to expect in 2020 and beyond
10:00 – 10:15 a.m. :: Morning Break
10:15 – 11:45 a.m. :: Tying It Together
- Finding value in complex markets
- Different perspectives based on market position, investment timelines, and other factors
- Expectations regarding complexity moving forward
- Achieving competitive advantage
Ken Sosnick, Managing Director – Power & Utilities Practice, FTI Consulting
Ken Sosnick is a Managing Director in the Power & Utilities practice at FTI Consulting with more than 15 years of experience with electric utility, natural gas pipeline and crude/product pipeline industry matters before the Federal Energy Regulatory Commission (FERC). Prior to joining FTI, he spent five years as a consultant, extensively engaged in the natural gas, crude/product and electricity markets. His work included analysis of natural gas pipeline and crude/product pipeline cost of service rates, levelized rates, market-based rates, discounted and negotiated rates, incremental vs. rolled-in project costs, initial certificate rates, allocation of corporate overhead costs, master-limited partnership income taxes, throughput/system rate design quantities, fuel recover mechanisms, NGA Section 5 rate complaints, return on equity calculations under the discounted cash flow/risk premium/capital asset pricing model/expected earnings methods, depreciation rate and negative salvage rate calculations, asset retirement obligations, FERC Form 1 and 2 filing requirements as well as being proficient in the application of FERC’s uniform system of accounts. Mr. Sosnick has prepared expert testimony for proceedings at FERC, prepared expert reports assessing and quantifying damages in civil litigation, conducted strategic analysis for a large energy company considering alternatives for its existing pipeline and storage portfolio, written a whitepaper on the impacts of the Tax Cuts and Jobs Act on FERC regulated assets as well as a whitepaper on the impacts of FERC Orders in SFPP, LP Docket No. IS08-390 related to Master Limited Partnerships and other pass-through entities income tax allowance. In addition, he has conducted confidential buy-side valuations and assessments of regulated electric and natural gas utilities in the U.S. Before beginning his career in consulting, Mr. Sosnick was a member of FERC’s Office of Enforcement and a technical expert in its Office of Administrative Litigation. He holds a BS in Accounting from the Indiana University of Pennsylvania.
Matthew DeCourcey, Managing Director – Power & Utilities Practice, FTI Consulting
Matthew DeCourcey is a Managing Director in the Power and Utilities practice at FTI Consulting and is based in Boston. Over the past 15 years he has provided strategic advisory services to clients operating across the energy supply chain and has advised clients regarding regulatory strategy, litigation and arbitration, transactions and business strategy. His practice focuses on assisting clients in their decisions regarding capital deployment and strategies in the face of economic and regulatory uncertainty in the markets in which they operate. Prior to joining FTI Consulting in 2018, Mr. DeCourcey was a Principal at Concentric Energy Advisors, where he led engagements related to corporate strategy, market analysis and regulatory advisory on behalf of pipelines, generators and utilities. He holds an MBA with a concentration in Finance from the University of Massachusetts at Amherst and a BS in Political Science from the University of Massachusetts at Boston.
Omni Shoreham Hotel
2500 Calvert St NW
Washington, DC 20008
Reserve your room:
please call 1-800-THE-OMNI (843-6664)
ask for the EUCI group rate
Room Block Reserved For:
Nights of January 26 – 27, 2020
Room rate through EUCI:
$169.00 single or double plus applicable taxes
Make your reservations prior to January 27, 2019.