November 20, 2024
PJM Plans Section 206 Filing on FMUs
PJM’s Board of Managers will ask FERC to approve a proposal opposed by generators to reduce payments to frequently mitigated units (FMUs).

PJM’s Board of Managers will ask the Federal Energy Regulatory Commission to approve a proposal opposed by generators to reduce payments to frequently mitigated units (FMUs).

General Counsel Vince Duane told the Markets and Reliability Committee last week the RTO will make the request under Section 206 of the Federal Power Act because the proposal by PJM and the Independent Market Monitor failed to win two-thirds of the Members Committee in June.

The plan garnered a 65.6% sector-weighted vote of the committee, with support from only 23% of Generation Owners and about half of Transmission Owners and Other Suppliers. End Use Customers and Electric Distributors voted unanimously in favor of the proposal, which would limit FMU adder payments to units whose net revenues are not covering their avoidable cost rate (ACR). (See FMU Proposal Falls Short.)

FERC & FederalGenerationPJM Markets and Reliability Committee (MRC)

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