FERC on Monday denied PJM’s rehearing request of the commission’s rejection of the RTO’s plan to modify its financial transmission rights credit requirement calculation, but it said it would address the RTO’s arguments in a future order (ER22-703-002, EL22-32-001).

PJM proposed to modify the FTR credit requirement by implementing an initial margin calculation from a historical simulation (HSIM) model using a 97% confidence interval. The commission first rejected the proposal Feb. 28, saying the RTO failed to support the plan because its independent auditors only validated the model at a 99% confidence interval. (See FERC Rejects PJM’s FTR Credit Requirement Proposal.)

FERC directed PJM to show within 60 days why its existing FTR credit requirement remains just and reasonable or explain what tariff changes will remedy the commission’s concerns.

PJM appealed FERC’s decision on March 31 by requesting a rehearing after stakeholders voted to endorse a motion for the RTO to refile the original proposal “accompanied by some new supporting rationale.” (See Stakeholders Encourage PJM to Defend FTR Filing.)

On April 22, the RTO asked for another 60 days to respond to the order to show cause to “allow PJM to complete further analyses, and conduct further engagement with PJM stakeholders, that will help PJM better determine the need for, and prepare and support any just and reasonable revisions to, PJM’s financial transmission rights credit requirement and fully address the concerns identified” by FERC.

The commission on Thursday gave PJM only another 30 days, setting a new deadline of May 31. In its one-page notice on Monday, the commission said the request for rehearing “will be addressed in a future order.”