The energy offer cap proposal and funding for PJM’s consumer advocates were among the topics discussed at the September 28 MC Webinar, which offered a preview of the agenda at the October 1 Markets and Reliability Committee and Members Committee meetings.
Energy Offer Cap Proposal
PJM’s Board has indicated that hearing from the stakeholder community with developments on the energy offer cap proposal is the top priority for its October meeting.
The proposal has been under discussion at the Markets and Reliability Committee for several months. There will be a vote on a consensus proposal on Thursday, as well as possible votes on other proposals.
Dave Anders, director – Stakeholder Affairs, commended the work of the stakeholder community in working toward a consensus to develop the current framework for the consensus proposal.
The complexity of the issue will bring a different voting process to Thursday’s MRC.
Normally, the MRC operates on truncated super-majority sector-weighted voting. If the main motion passes, there are no further votes. If it doesn’t, there is a vote on the first alternate; if it passes, there are no further votes. If it doesn’t, there is a vote on a second alternate and so on.
Proposers of several plans have agreed to take their plans off the table, should the framework plan pass. If it does not, however, they will present their plans for a vote.
“If we voted on just one of the four [as an alternate], it wouldn’t give the board the richness and understanding of the depth of support for the various proposals,” said Anders.
If stakeholders cannot reach a consensus on Thursday, PJM staff will recommend that the board take action.
In another presentation, Dan Griffiths of the Consumer Advocates of the PJM States (CAPS) presented a proposal to change the way the group is funded. The CAPS funding proposal will be a first read at Thursday’s Members Committee meeting, with a possible vote at the October 22 meeting.
Since its formation in 2013, CAPS has been funded through the Constellation settlement. The state consumer advocates are seeking a change to the PJM tariff to allow them to continue their participation in PJM matters. The funding would pay for staffing and travel for state consumer advocates.
The funding request amounts to less than a penny annually for typical residential consumers ($0.00067 per MWH for 1,000 KWH per month). This will generate approximately $450,000 per year.