On June 9, 2015, the Federal Energy Regulatory Commission established a new proceeding under section 206 of the Federal Power Act, finding that aspects of PJM’s current tariffs may be unjust, unreasonable, unduly discriminatory or preferential.
The FERC found that “aspects of PJM’s current tariffs may be unjust, unreasonable, unduly discriminatory or preferential because they do not appear to allow market participants to submit day-ahead offers that vary by hour and do not appear to allow market participants to update their offers in real time, including during emergency situations.”
The FERC requires PJM to submit a report by July 10, 2015 to either:
- report whether it will propose tariff changes that
- allow market participants to submit day-ahead offers that vary by hour, and to update their offers in real time (including during emergency situations); and
- make any associated modifications to their market power mitigation rules; or
- explain why such changes are not necessary.
The report must include a proposed timeline from PJM explaining how it will implement such changes by Nov. 1, 2015 (or as soon as practicable thereafter).
To discuss the potential tariff changes and the report with stakeholders, PJM will use the Generator Offer Flexibility Senior Task Force, which will meet for the first time on June 19. Given the short timeframe, PJM will continue to provide notice to the task force of the topics that will be discussed in its meetings.