TOs Will Disclose Calculation Methodologies
PJM transmission owners will publicly post the calculations they use to allocate energy, capacity and transmission costs under a plan outlined to the Markets and Reliability Committee.

Transmission owners will publicly post the calculations they use to allocate energy, capacity and transmission costs under a plan outlined to the Markets and Reliability Committee.

The Transmission Owners Agreement-Administrative Committee’s plan is intended to promote greater transparency, addressing a problem statement approved by the MRC last year. (See MRC Backs Industrials’ Call for Transparency in Transmission Owner Calculations.)

The proposal would add a page to the PJM website containing the methodologies transmission owners use to calculate total hourly energy obligations (THEO), peak load contributions (PLC) and network service peak loads (NSPL). The calculations are used to allocate cost responsibility among load-serving entities.

The issue arose because some TOs have not filed tariffs disclosing the methodology they use. Some members complained that the lack of transparency made it difficult to ensure they were being properly charged.

PJM Markets and Reliability Committee (MRC)

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