Bresler Discusses Possible FERC Action

Stu Bresler, vice president – Markets, briefed stakeholders Thursday at the Markets and Reliability Committee on possible future activity stemming from action by the Federal Energy Regulatory Commission on the Minimum Offer Price Rule.

On March 21, a group of market participants within the region PJM serves filed a complaint with the FERC that PJM’s MOPRs are insufficient. PJM submitted an answer on the complaint on April 11.

PJM asked the FERC to reject the complaint because it would require new MOPR rules to be in place for the May 2016 base residual auction. PJM, however, recognized that a gap in the current MOPR could result in unjust and unreasonable rates in certain situations. It asked the commission to order a comprehensive stakeholder process to review any new MOPR provisions and file any new rules in time for the May 2017 auction.

Bresler stressed that Thursday’s presentation was to make stakeholders aware of the upcoming process.

“If we get a compliance requirement from the FERC, we’re going to need to talk about it,” said Bresler.

External Capacity Performance Enhancements

PJM intended to ask the MRC to endorse the problem statement and issue charge on external capacity performance enhancements at the first read. The committee moved the vote to the May meeting, however, when stakeholders voiced concerns that the scope of the problem statement should be better defined.

PJM and MISO have been working on temporary solutions to resolve operational and reliability challenges for existing pseudo ties. PJM would like to implement a more permanent solution prior to its 2017 base residual auction for the 2020/21 delivery year.

PJM and its stakeholders will use the existing forums to explore operational, markets and planning challenges of the pseudo-tie implementation process.

In other pseudo-tie-related business, the committee endorsed revisions to Manual 12, the PJM tariff and the operating agreement regarding PJM business rules for dynamic transfers.

The MRC endorsed:
Among the first reads (for votes at the May MRC):