By Suzanne Herel

PJM is seeking to reach a consensus with neighboring RTOs on a long-term increase in the $1,000 energy offer cap.

PJM CEO Terry Boston said that he proposed a joint approach to ISO-NE and NYISO at an ISO/RTO Council Markets Committee meeting last week. Boston said he also discussed the issue separately with MISO.

Boston told the Markets and Reliability Committee Thursday he wants to coordinate with the neighboring RTOs “so it doesn’t create a seams problem with people rushing across the border when there is a gas price spike.”

On Dec. 15, PJM asked the Federal Energy Regulatory Commission to raise the cost-based cap to $1,800/MWh through March (EL15-31). PJM made its request to FERC in a Section 206 filing after members failed to reach consensus over the past eight months. (See PJM Board to Seek $1,800 Offer Cap.)

Boston again expressed his disappointment in the deadlock. “Our ability to govern ourselves in the stakeholder process depends in large part on compromise,” he said.

Several members asked what will happen after March.

“We believe this issue is a broader national issue. We are hoping FERC would take this on,” said Andy Ott, PJM executive vice president for markets. “If we don’t see that occurring, we will have to take it up again.”