A Review of PJM Interconnection's April 13, 2018, Response to National Energy Technology Laboratory's Report on Reliability, Resilience and the Oncoming Wave of Retiring Baseload Units
In a March 2018 report entitled Reliability, Resilience and the Oncoming Wave of Retiring Baseload Units , the National Energy Technology Laboratory (NETL) analyzed the fleet performance of market areas impacted by a 13-day storm known colloquially as the “Bomb Cyclone.” Special attention was paid to northeastern areas, as these were most impacted. With respect to PJM Interconnection LLC (PJM), the report found that 1) without coal units, the system would have experienced shortfalls; 2) approximately 25 gigawatts (GW) of heretofore underutilized coal-fired plants provided crucial capacity, lending the system resilience; 3) nearly 28 GW of natural gas-fired capacity did not deploy, due to severe spikes in natural gas prices caused in turn by constrained gas deliverability, in the face of tremendous space heating demand and transmission deliverability constraints on the bulk electric system. In April 2018, PJM issued a response that argued the NETL analysis was misplaced, asserting that gas-fired capacity was available and that it could have been called into service but was not, due to “economics.” This brief represents NETL’s reaction to PJM’s assertions in its April 2018 response.