The Federal Energy Regulatory Commission last week accepted PJM’s revised plan for compensating frequency response providers, rejecting a rehearing request from PSEG Companies.

The commission’s order concerned PJM’s January 15 compliance filing in response to Order 755, which required regional transmission operators (RTOs) and independent system operators (ISOs) to institute a two-part payment method for compensating frequency regulation resources. The order required RTOs and ISOs to make a capacity payment for making the resource available when needed and a performance payment based on the amount of work performed in response to the system operator’s dispatch signal.

PJM’s January 15 submission — its third compliance filing in response to Order 755 — addressed FERC’s November 16 ruling that PJM’s methodology would allow resources to be paid differently even when their performance is comparable.

PSEG asked the commission to reconsider the November order, arguing that PJM’s use of a “benefits factor” in determining compensation was unjust and unreasonable. The commission rejected PSEG’s challenge on procedural grounds Thursday, saying it raised issues settled in a previous order.

The commission also said PSEG failed to support its argument that PJM’s methodology would lead to overpayments to regulation resources, saying the company “has neither demonstrated when overcompensation occurs nor how it ought to be measured.”

The commission decided in PSEG’s favor on one point, saying PJM had failed to fully comply with its November order. The commission ordered PJM to make an additional compliance filing within 90 days that revises a section of its Operating Agreement.