PJM asked FERC on Friday to initiate settlement judge procedures in its dispute with generators over nonperformance penalties for the December 2022 winter storm.
The RTO asked the commission to establish a “global settlement procedure” for the eight complaints filed by generators (EL23-53 through EL23-60) and “for any similar complaints that may be filed.”
PJM officials told stakeholders last week they had assessed more than $1.8 billion in performance penalties on generators that underperformed during the Christmas weekend storm dubbed Winter Storm Elliott. (See related story, PJM: Elliott Nonperformance Penalties Total More Than $1.8B.)
The RTO told FERC it properly implemented its emergency procedures and that the nonperformance charges follow its tariff and are just and reasonable.
“At the same time, however, PJM recognizes the potential benefits of a prompt resolution, to the extent possible, of the disputed assessment of these charges,” it said. “These disputes, considering the complaint, rehearing and appeal processes, could hang over the PJM market for years, affecting market participants’ conduct in ways that may be irreparable and not always desirable. The capacity market also is designed in large measure to signal the need for new capacity resource investment, and the expectations of the financial and investment community accordingly are an important backdrop to the operation of this market. Timely, consensual resolution of these disputes thus could, potentially, help support the long-term health of the resource adequacy construct in the PJM region.”
PJM noted that several of the complainants have also requested settlement procedures or alternative dispute resolution.
“A global proceeding would best provide, to the extent possible, a measure of principled consistency in any settlement outcomes of these multiple complaints,” it added. “To that end, PJM seeks a single overarching settlement process, led and coordinated by the commission’s administrative law judge(s), for all of these complaints.”
