MC Webinar Wrap-up

Updates to the energy offer cap filing and PJM’s analysis of the Clean Power Plan led a full slate at the Members Committee Webinar on January 25.

  • On Dec. 11, 2015, the Federal Energy Regulatory Commission accepted a proposalby PJM to modify various provisions related to the energy offer cap. On Monday, PJM presented conforming language for its tariff and operating agreement regarding the exclusion of the 10-percent adder on cost-based offers above $2,000 a megawatt-hour in the tariff. PJM is seeking stakeholder approval at the Markets and Reliability Committee and MC meetings on January 28. This conforming language clarifies what FERC has already ordered and will remain effective until superseded by commission action.
  • Muhsin Abdurrahman, senior market strategist – PJM Emerging Markets, presented updates and a timeline for its Clean Power Plan analysis. PJM is developing a business-as-usual scenario to be completed by March and is continuing discussions with the Organization of PJM States and state air regulators in anticipation of publishing its analysis assessment in May.
  • Dave Souder, director – PJM Operations Planning, gave the final status update on completed hot and cold weather action items.
  • PJM announced it will soon notify members to re-verify sectors and affiliate disclosure. As a requirement of PJM’s Operating Agreement, all members need to re-verify their sectors periodically. Sector changes will be announced at the MC meeting during the Annual Meeting on May 19.
  • Suzanne Daugherty, vice president, chief financial officer and treasurer for PJM discussed stated rates and the timeline for the review process currently underway in the Finance Committee.
  • The Market Monitor report covered portfolio structure and allocation of financial transmission rights and auction revenue rights in advance of a February 4 technical conference at the FERC. The conference will focus on whether PJM’s proposed revisions to its tariff addressing these matters are just and reasonable. The Market Monitor also discussed the potential implications of a proposal on netting FTR portfolios. The MM also discussed an analysis of potential credit risks associated with the FERC’s up-to-congestion proceeding.