MC Webinar Addresses PJM FTR Compliance Filing

At the Nov. 14 Members Committee Webinar stakeholders heard updates (PDF) about PJM’s compliance filing in response to the Federal Energy Regulatory Commission’s Sept. 15 order requiring reforms to financial transmission rights.

Asanga Perera, manager – Market Simulation, presented the revisions filed Nov. 14 to make specific reforms regarding balancing congestion and allocation of Stage 1 Auction Revenue Rights (ARR) retired source points.

On Sept. 15, the Commission issued an order on PJM’s previous filing that addressed revenue shifts and cross-subsidies between and among auction revenue rights and FTR holders. These shifts and cross-subsidies were due to over-allocation and FTR portfolio netting (Dockets EL16-6-001 and ER16-121-000).

PJM’s compliance filing makes the following reforms regarding balancing congestion:

  • Balancing congestion will include real-time market-to-market payments
  • Balancing congestion will be allocated pro-rata to real time load plus export based on gross demand
  • FTR surplus will be allocated to ARRs based on ARR credits
  • FTR payout will be less than or equal to 100 percent

The compliance filing makes the following reforms regarding Stage 1 ARR resources:

  • Each transmission zone’s Stage 1 ARR allocation capacity will be capped at the total historical value
  • All historical and replacement resources must be firm network resources
  • Commercial generators can replace retirements across zones
  • Rate-based generators can only replace retirements within a zone
  • Replacements will be based on economics and feasibility

PJM has filed for its changes to be implemented by June 1.

Documents Section of PJM Website to Be Replaced with Library

Lana Javakov, senior user experience designer – Creative Services, presented on a new section of called the Library, which will replace the Documents section of the website.

The presentation (PDF) noted that the Library section will contain governing documents, manuals, filings & orders, compliance documents, reports & notices, maps and fact sheets.

All Federal Energy Regulatory Commission filings and orders, transmission owners’ filings and other federal filings will be consolidated into one page. In addition, the new structure will place all documents associated with a filing together in one place with filters to help visitors find what they need.

The section is being reorganized in response to feedback from user interviews with PJM members and stakeholders.


Proposed Charter for Security & Resilience Committee Presented

Jonathan Monken, senior director – System Resilience and Strategic Coordination, presented an early read of a proposed charter (PDF) for a new Security & Resilience Committee (PDF) that would report to the Members Committee.

The presentation noted that the proposed committee is designed to take a proactive approach to discussing a broad range of security- and resilience-related topics.

The committee would not make decisions, but periodically report to the MC and Transmission Owners Agreement-Administrative Committee. Membership would be on a volunteer basis. The committee would replace the current Security & Resilience Subcommittee.

The charter will be presented to the Members Committee Nov. 17.


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