By Rory D. Sweeney

Consumer advocate Public Citizen has filed a complaint with FERC, accusing PJM of violating the Federal Power Act by making political contributions with membership funds (EL18-61).

Tyson Slocum, director of Public Citizen’s energy program, said PJM has made at least $456,500 in campaign contributions to the Democratic Governors Association and the Republican Governors Association since 2007 and hasn’t disclosed the contributions to either FERC or its stakeholders.

Susan Buehler, a PJM spokesperson, said the contributions were meant to allow staff access to energy-related policy summits and “were not intended to support any political campaign.”

“PJM has acted in accordance with all applicable laws and regulations,” she said in an emailed statement. “PJM’s external affairs and communications costs, including these memberships, are collected through PJM’s filed stated rates consistent with FERC’s order authorizing these costs to be collected from ISO-RTO members. PJM operates as a profit-neutral organization for which educating and informing are essential to our FERC-defined functions.”

Slocum said that’s the problem.

“That’s a violation of the Federal Power Act’s just and reasonable standard,” he said. “Given PJM’s admission that they funded these contributions with filed rate money makes this much more complicated for PJM. … They can talk about, ‘Oh, it wasn’t our intent.’ … When you give [PACs] money, you are enabling the financing of partisan election campaigns. … That is totally inconsistent with just and reasonable rates, and I think that we now have a very good case that they’re in violation.”

Slocum said the contributions came to light during a broader investigation of corporations using political action committees (PACs) to make otherwise unlawful campaign contributions.

“You simply launder the money through the Democratic or Republican association, who then gives it to the candidate. It’s money laundering in the political sense,” he said.

Slocum said he does not suspect PJM of attempting to funnel the money to any particular candidate but is concerned that it is not disclosed.

“PJM has not disclosed that level of detail to FERC or its stakeholders. This is not a FERC-approved transaction. [PJM is] saying they think it’s consistent with FERC’s order, but FERC is not aware that PJM has been using revenues from its filed rate to make contributions to a 527 [PAC],” he said.