Power sellers in PJM and other RTOs and ISOs will no longer have to submit market power screens under proposed changes to the Federal Energy Regulatory Commission’s market-based rate (MBR) regulations.

The change is one of dozens included in FERC’s first major overhaul of the MBR rules since their creation in 2007.

The commission’s Notice of Proposed Rulemaking (RM14-14) would streamline several MBR rules while adding some new requirements. FERC said current rules create some paperwork burdens that outweigh their benefits.

Here’s a guide to what’s in the 143-page NOPR, including applicable paragraph numbers.

What’s Added

• Rows to the indicative screen format for sellers to specify simultaneous transmission import limit (SIL) values as well as long-term firm purchases and remote capacity from outside the study area. Screens must be filed in “a workable electronic spreadsheet format.” (paragraph 13)
• Solar to the definition of energy-limited generation resources, which use a five-year average capacity factor. Resources that do not have five years of historical data may use regional capacity factor estimates from the Energy Information Administration (EIA). (15)
• A redefinition of uncommitted capacity to include all long-term firm purchases of capacity or energy in their indicative screens and asset appendices, regardless of whether the seller has operational control over the generation capacity supplying the purchased power. FERC said the change will help size the market correctly and will establish consistent treatment of long-term firm transactions. (16)
• A provision that asset appendices must be in an electronic spreadsheet format. Some headings will be changed for clarity. Some filing instructions are changed. (19)
• A requirement that sellers provide an organizational chart as descriptions of their affiliates and upstream owners when filing initial applications, updated market power analyses and notices of change in status involving new affiliations. The chart would be similar to that required from applicants under section 203 of the Federal Power Act. (22)

What’s Subtracted

• The requirement that MBR sellers in RTOs, who use FERC-approved monitoring and mitigation, submit market power screens. (11)
• The requirement that generation owners submit indicative screens if all of the capacity owned or controlled by them and their affiliates in a balancing authority area is fully committed. (11)
• The requirement that MBR sellers file quarterly land acquisition reports and provide information on their control of sites for development of new generation capacity. (17)
• The requirement that changes in status below a 100-MW threshold have to be reported. Going forward, long-term firm purchases of capacity or energy will be included in the calculation. (18)

What Else is Changed

• Broadens the default geographic market for independent power producers (IPPs) with generation capacity located in a generation-only balancing authority area (BAA). Instead of being limited to the home balancing authority area, the IPP’s default market would include all balancing authority areas directly interconnected to the IPP’s home BAA. (12)
• Provides an updated region map and three-year filing schedule for market power analyses from Category 2 sellers. (20)
• Adds a distinction between power marketers (which should include all affiliated generation in a region) and power producers (which would include only affiliated generation capacity that is located in the same region as the power producer’s generation assets) for the determination of seller category. FERC is proposing the change “based on the fact that a power marketer is assumed to have no home market, while it is assumed that a majority of a power producer’s sales will be in market(s) in which it owns generation assets.” (21)
• Sellers should include all load associated with the balancing authority area(s) within the study area, including non-affiliated load in Submittal 1. Row 8 will be amended to read “Adjusted Historical Peak Load.”

Submittal 1 requires sellers to use FERC Form No. 714 load values or explain the source of the data used. FERC is seeking comment on the appropriate source of historical peak load data. (26)