PJM Files Energy Cap Tariff Change with FERC

On October 14, PJM filed its tariff revisions with the Federal Energy Regulatory Commission to modify various provisions related to the energy offer cap in advance of the 2015-2016 winter.

The proposed revisions allow cost-based offers to be submitted at any level, however the revisions limit the ability of such cost-based offers to set LMP 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.  PJM is requesting an effective date of December 14, 2015.