Serving the energy industry for over 30 years
By - Jon Brown

PJM Market Fundamentals, Operations and Value Dynamics
Converting Market Awareness into Market ROI
June 15-16, 2020 | Online :: Central time

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Overview

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.

Learning Outcomes

  • 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

Credits

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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.

 

Instructional Methods

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. 

Agenda

Monday, June 15, 2020 – Central Time

8:30 – 9:00 a.m. :: Login

9:00 – 9:15 a.m. :: Overview and Introductions


9:15 a.m. – 12:30 p.m. :: Program Content

Includes Breaks

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)

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

12:30 – 1:15 p.m. :: Lunch Break


1:15 – 5:15 p.m. :: Program Content

Includes Breaks

Rapid Evolution of Market Fundamentals

  • Making sense of two major paradigm shifts
    • The shale gas revolution
    • Renewables penetration
  • Outcomes
    • Retirements
    • New market entry and the role of renewables state sponsorship
  • Effects on pricing and system reliability
  • Potential market distortions
    • Fast start pricing
    • Shortage pricing
    • FRR
    • State and other subsidies
    • Minimum Offer Price Rule (MOPR)
    • PURPA
    • Etc
  • Understanding new build and retirement economics
    • Participation by infrastructure investors
    • Identification of new opportunities
    • Rapid turnover of existing assets

High Level RTO Comparison

  • Focus on market fundamentals rather than mechanics

5:15 p.m. :: Program Adjourns for Day


Tuesday, June 16, 2020 – Central Time

8:30 – 9:00 a.m. :: Login


9:00 a.m. – 12:30 p.m. :: Program Content

Includes Breaks

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

Converting Market Awareness into Market ROI

  • Finding value in complex markets
  • Different perspectives based on market position, investment timelines, and other factors
  • Expectations regarding complexity moving forward
  • Achieving competitive advantage

Instructors

Matthew DeCourcey

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.

 

Maheen Bajwa

Maheen Bajwa is a Director in the Power & Utilities practice at FTI Consulting. She specializes in economic analysis, the construction of financial models, and large, complex datasets.  She has been involved in the evaluation of historical FTR profitability and collateral requirements at two ISOs. She has developed FTI’s in-house model designed to estimate the cost of capital for various US utilities and a framework for identifying M&A opportunities, as well as worked on projects involving energy policy reform and cost of service modeling.  Ms. Bajwa economic consulting experience has also included matters related to renewable energy such as negative wholesale electricity pricing and retail rates for distributed generation, wholesale electricity market design, and the analysis of utility customer usage and demand data in the context of a rate design dispute. Her work has also included energy development on tribal lands, municipal wholesale water contract disputes and pipeline right-of-way disputes.  She holds a Master’s Degree in Economics from the London School of Economics and Political Science and a Bachelor’s Degree in Economics from Vassar College.

Online Delivery

Our courses are designed to be the best possible use of your valuable time – get the information you need to improve your position in the market in an interactive, dynamic format.

We will be using Microsoft Teams to facilitate your participation in the upcoming event. You do not need to have an existing Teams account in order to participate in the broadcast – the course will play in your browser and you will have the option of using a microphone to speak with the room and ask questions, or type any questions in via the chat window and our on-site representative will relay your question to the instructor.

  • You will receive a meeting invitation will include a link to join the meeting.
  • Separate meeting invitations will be sent for the morning and afternoon sessions of the course.
    • You will need to join the appropriate meeting at the appropriate time. 
  • If you are using a microphone, please ensure that it is muted until such time as you need to ask a question.
  • The remote meeting connection will be open approximately 30 minutes before the start of the course. We encourage you to connect as early as possible in case you experience any unforeseen problems.

Register

Please Note: This event is being conducted entirely online. All attendees will connect and attend from their computer, one connection per purchase. For details please see our FAQ

Event Standard RateAttendees
PJM Fundamentals, Operations and Value Dynamics - (single connection)US $ 1195.00
Pack of 5 connectionsUS $ 5,375.00
Pack of 10 ConnectionsUS $ 8,965.00
For volume discounts call +1.303.770.8800 for quote
* all other discounts do not apply to license packs

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Cancellation Policy

Your registration may be transferred to a member of your organization up to 24 hours in advance of the event. Cancellations must be received on or before May 15, 2020 in order to be refunded and will be subject to a US $195.00 processing fee per registrant. No refunds will be made after this date. Cancellations received after this date will create a credit of the tuition (less processing fee) good toward any other EUCI event. This credit will be good for six months from the cancellation date. In the event of non-attendance, all registration fees will be forfeited. In case of conference cancellation, EUCIs liability is limited to refund of the event registration fee only. For more information regarding administrative policies, such as complaints and refunds, please contact our offices at 303-770-8800

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