PJM’s proposed rule changes designed to address underfunding of financial transmission rights will be the subject of a FERC technical conference on Feb. 4.
The Financial Marketers Coalition (representing J. Aron & Co., DC Energy, Inertia Power, Saracen Energy East and Vitol), Shell Energy and others challenged the changes, in particular the elimination of netting negatively valued FTRs against positively valued FTRs within portfolios (EL16-6-001, ER16-121).
The conference will consider PJM’s auction revenue rights (ARR) modeling and allocation processes; treatment of portfolio positions in allocating underfunding or surplus among FTR holders; the potential for market manipulation; and balancing congestion in ARR/FTR product design. (See FERC Orders Tech Conference on PJM FTR Rule Changes.)
PJM made changes to improve FTR revenue adequacy between 2010 and 2015, but then said the changes resulted in an unfair shift of revenues from ARR holders to FTR holders.
In addition to the netting change, PJM in October proposed to increase ARR results by 1.5% per year in the Stage 1A 10-year simultaneous feasibility process. (See PJM to File FTR, ARR Rule Changes with FERC.)
The conference will be held from 9:30 a.m. to 5 p.m. in the commission meeting room.
— Suzanne Herel