Five generators have struck a $10 million settlement with MISO and PJM over the RTOs’ past practice of double-charging pseudo-tied generation for congestion fees.
Under the settlement approved May 29 by FERC, the RTOs will refund a combined $10.3 million to five pseudo-tied generators. MISO will pay a total $8.47 million, while PJM will pay $1.83 million (ER20-1342).
Tilton Energy lodged a complaint in 2016 against the RTOs for assessing overlapping congestion charges on pseudo-tied resources. American Municipal Power, Northern Illinois Municipal Power Agency, Dynegy and Illinois Power Marketing soon followed with similar complaints. FERC consolidated the proceedings, and the commission ordered a refund hearing in the matter last May. (See Refund Hearing Ordered in Pseudo-Tie Complaint.)
The RTOs introduced a temporary rebate program in 2017, then began including pseudo-ties in the day-ahead scheduling process in 2018 to end redundant congestion costs.
Dynegy will receive the largest refund, with almost $5.3 million from MISO and $1.1 million from PJM. American Municipal Power will receive the second highest with $1.9 million from MISO and a little more than $412,000 from PJM.
The three other generators’ refunds are well under $1 million apiece:
- Northern Illinois Municipal Power Agency stands to receive $620,193 from MISO and $133,997 from PJM;
- Illinois Municipal Electric Agency will receive $493,398 from MISO and $106,602 from PJM; and
- Tilton Energy will be refunded $161,177 from MISO and $34,823 from PJM.
FERC said the settlement was fair, in the public interest and resolved all the pseudo-tied congestion fee disputes that it set for hearing last year.
