FERC accepts PJM Energy Offer Cap proposal

On Friday, December 11, the Federal Energy Regulatory Commission accepted a proposal by PJM to modify various provisions related to the energy offer cap in advance of the 2015-2016 winter.

PJM filed revisions to its Tariff and Operating Agreement with the FERC on October 14. The changes went into effect on Monday, December 14.

The revisions allow cost-based offers to be submitted at any level; however, the revisions limit the ability of the cost-based offers to set the locational marginal price up to a cap of $2,000/megawatt hour.  Any costs in excess of $2,000/MWh may be recovered through make-whole payments and are subject to an after-the-fact review by PJM and the independent market monitor.