Two proposals for liquidating default financial transmission rights (FTR) positions will be presented for a vote at the Markets and Reliability Committee on Sept. 27.
The plans were chosen from a sector-weighted, non-binding poll whose results showed they had more than 50 percent sector support.
Members have until close of business Sept. 19 to notify PJM if they intend to move and have a second for any alternate proposals – existing or new – for additional consideration. PJM needs the time to draft accompanying Tariff and operating agreement language to post with Sept. 20 to allow a vote at the Sept. 27 MRC meeting, Chief Financial Officer Suzanne Daugherty said at a Sept. 18 special session of the MRC.
This does not preclude anyone from bringing a vote from the floor, but would help streamline the process, she said.
PJM declared GreenHat Energy, LLC in payment default on June 21.
PJM currently is operating under a 205 filing to the Federal Energy Regulatory Commission requesting the suspension of liquidation of defaulted FTRs until Nov. 30. (See PJM files with FERC to suspend FTR liquidation of GreenHat portfolio.)
The two proposals to be presented at the Sept. 27 MRC meeting are:
- Option B (3.80 support out of potential 5.00): Do not offer any more positions for liquidation.
- Option J1 (3.30 support out of potential 5.00): Liquidate long-term FTRs in annual auction; however, do not offer for liquidation – instead, settle – the remaining 2018/19 positions.
At the MRC meeting, these two proposals, as well as any properly moved and seconded, will be voted on before results are revealed. Any proposal receiving more than two-thirds sector support at the MRC will proceed to that day’s Members Committee meeting.
If none does, then no proposal will be brought to the Members Committee.
If one or more does, the proposals will be ranked for voting at the Members Committee according to how they fared in sector voting results in the MRC meeting.
The Members Committee will receive results after each vote, and voting will stop once a proposal garners super-majority support.
If no proposal is approved at the Members Committee, anyone who voted against a proposal would be able to request another vote of the proposal for which the member initially voted no.
Daugherty said PJM has no intention of making a “206” filing – one submitted without member support – to FERC.
If no proposal wins a super majority at the Members Committee, a motion may be made to extend the Nov. 30 liquidation suspension deadline to allow time for further stakeholder discussion, she said.
Also at the meeting, Daugherty responded to members’ request that potential losses be calculated for January 2019 as if the grid experienced the congestion it did during the cold snap of January 2018. Net losses would have been approximately $41 million, she said, but pointed out that the figure did not take into consideration the transmission upgrades that have been energized since January 2018.