PJM MISO Joint Common Market
Initiative Meeting
Modeling Interface between PJM and MISO
May 27, 2015
Model
• Two RTO network model
• PJM’s network comprises 18 buses and MISO’s
network comprises 8 buses
• Overlapping regions: flow on the tie lines are
affected by both PJM’s and MISO’s actions
• Allows for applying shadow price convergence
logic
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Model
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Model
• Step 1 (MISO)
• MISO is the monitoring RTO
• Solve the dispatch model
• Compare State Estimator (SE) flow against Model flow
• Step 2 (MISO)
• If SE flow exceeds the Model flow, MISO redispatches its
generators to reduce the flow
• Compute shadow price
• Pass the shadow price and flow limit to PJM
• Step 3 (PJM)
• Solve the dispatch model using MISO’s shadow price and
flow limit
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Example (Step 1)
Load (MW)
Gen (MW)
Interchange (MW)
Total system cost
Marginal Generators
18,050
18,050
N/A
$471,392
MISO2 & PJM8
Joint Optimization
1,000
$ 33- $57
PJM’s World
Load (MW)
Gen (MW)
Interchange (MW)
Marginal Generator
Load (MW)
Gen (MW)
Interchange (MW)
Marginal Generator
Load (MW)
Gen (MW)
Interchange (MW)
Marginal Generator
©2015
225
12,500
12,500
0
PJM4
5,550
5,550
0
MISO3
18,050
18,050
N/A
N/A
$ 34
MISO’s World
900
$ 51
Reality
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$ 34
0 MW
0 MW
1125
5
$ 51
Example (Step 2)
Load (MW)
Gen (MW)
Interchange (MW)
Total system cost
Marginal Generators
18,050
18,050
N/A
$471,392
MISO2 & PJM8
Joint Optimization
1,000
$ 33- $57
PJM’s World
Load (MW)
Gen (MW)
Interchange (MW)
Marginal Generator
Load (MW)
Gen (MW)
Interchange (MW)
Total system cost
Marginal Generator
5,550
5,550
0
$187,230
MISO3 & MISO5
Load (MW)
Gen (MW)
Interchange (MW)
Marginal Generator
©2015
225
12,500
12,500
0
PJM4
18,050
18,050
N/A
N/A
$ 34
MISO’s World
800($31)
MISO passes
shadow price
and flow limit
to PJM
$ 42 - $ 60
Reality
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$ 34
0 MW
0 MW
1025
6
$ 52
Example (Step 3)
Load (MW)
Gen (MW)
Interchange (MW)
Total system cost
Marginal Generators
18,050
18,050
N/A
$471,392
MISO2 & PJM8
Joint Optimization
1,000
$ 33- $57
PJM’s World
Load (MW)
Gen (MW)
Interchange (MW)
Total system cost
Marginal Generator
Load (MW)
Gen (MW)
Interchange (MW)
Total system cost
Marginal Generator
12,500
12,500
0
287,410
PJM5 & PJM12
5,550
5,550
0
$187,230
MISO3 & MISO5
Load (MW)
Gen (MW)
Interchange (MW)
Marginal Generator
©2015
18,050
18,050
N/A
N/A
200 ($30)
PJM uses
MISO’s shadow
price and flow
limit
$ 43
MISO’s World
800($31)
$ 42 - $ 60
Reality
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$33 - $51
0 MW
0 MW
1000
7
$ 52
MISO/Patton Proposed Interface Definition
MISO’s PJM Price
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MISO/Patton Proposed Interface Definition
PJM’s MISO Price
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PJM Proposed Interface Definition
PJM’s MISO Price
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PJM Proposed Interface Definition
MISO’s PJM Price
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Joint Optimization
Results
One M2M Constraint (MRTO:
MISO)
Shadow Price Converges
Solution with Binding M2M Constraint
with Shadow-Price Convergence - No
transactions
Patton's Design
(all generator buses)
Price difference prior to
scheduling transaction
LMP
Shadow Price
Load (MW)
Gen (MW)
Transaction (MW)
Cost of Generation
Marginal Generator(s)
Flow on MISO5-MISO3
Solution with Binding M2M Constraint with Shadow-Price Non
Convergence - 300 MW PJM-MISO transaction
PJM Design
(buses at the
seams)
$9.45
Binding at 1000 MW
$33 - $57
$41.69
18,050
18,050
N/A
$471,392
MISO2 & PJM8
1000
Patton's Design (zero out dfax)
(all generator buses)
Patton's Design ( zero
out CLMP)
(all generator buses)
PJM Design
(buses at the
seams)
$5.72
$1,716.00
$5.03
$1,509.00
$3.54
$1,062.00
$9.11
Transaction Settlement
Difference in Prices Post
Transaction
Gross Profit to Market
PJM+MISO Generation Costs
$474,640
$472,399
$472,887
$471,761
Total Cost
$474,640
$474,115
$474,396
$472,823
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Appendix
One M2M Constraint (MRTO:
MISO)
Shadow Price Converges
MISO Model
LMP
Shadow Price (Passed to PJM)
Load (MW)
Gen (MW)
Transaction (MW)
Cost of Generation
Marginal Generator(s)
Flow on MISO5-MISO3
MISO's PJM Price
Energy Component
Congestion Component
PJM Model
LMP
Shadow Price
Load (MW)
Gen (MW)
Transaction (MW)
Cost of Generation
Marginal Generator(s)
Flow on MISO5-MISO3
PJM's MISO Price
Energy Component
Congestion Component
©2015
Solution with Binding M2M Constraint
with Shadow-Price Convergence - No
transactions
PJM Design
Patton's Design
(buses at the
(all generator buses)
seams)
Binding at 800 MW
$42 - $60
$31.28
5,550
5,550
0
$187,230
MISO1 & MISO3
800
$48.97
$51.88
$54.92
$54.92
($5.96)
($3.04)
Violation penalty beyond 200 MW
$34 - $47
$33 - $51
$30.57
12,500
12,500
0
$287,410
PJM5 & PJM12
200
$39.52
$42.77
$39.52
$0.00
$3.25
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Solution with Binding M2M Constraint with Shadow-Price Non
Convergence - 300 MW PJM-MISO transaction
Patton's Design ( zero
Patton's Design (zero out dfax)
out CLMP)
(all generator buses)
(all generator buses)
Binding at 800 MW
$37 - $61
$41.77
5,550
5,250
300
$172,899
MISO1 & MISO3
800
$46.27
$54.23
($7.95)
Violation penalty beyond 200 MW
$37 - $45
$33 - $56
$19.49
$41.77
12,500
12,800
300
$299,500
$299,988
PJM4 & PJM12
PJM12
200
214.62
$40.55
$41.24
$40.55
$41.24
$0.00
$5.16
13
PJM Design
(buses at the
seams)
$37 - $59
$37.58
$171,846
$48.85
$52.51
($3.66)
$34 - $55
$37.58
$299,915
PJM8
211
$45.31
$41.32
$3.99
Monitoring Analytics, LLC
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Suite 160
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