State regulators in SPP’s Markets+ footprint have approved tariff language designed to address a “gap” in the accuracy of information to be shared with the Market Monitor under FERC’s duty-of-candor requirements.
Weeks of discussion between regulators, SPP’s Market Monitoring Unit, and SPP and western utility legal staff resulted in the Markets+ State Commission’s endorsement of a paragraph during its regular monthly conference call Feb. 16.
Nebraska abstained from the vote.
The proposed tariff language would require market participants to “exercise due diligence and good utility practice” in providing material information when responding to the MMU’s written request for data and information. The MMU would provide a “reasonable amount of time” for utilities to deliver the requested information, depending on the amount of information.
If the market participant determines there is an error in its response, it would have to “promptly” notify the MMU and work to correct the mistake.
Questioned as to why the language is necessary, Keith Collins, vice president of market monitoring at SPP, said the MMU has encountered several instances within the RTO’s current footprint of entities either ignoring the monitor’s request or submitting incorrect action.
“This does happen, unfortunately,” he said, noting the MMU based several hypothetical examples shared during deliberations over the language on those circumstances.
“We feel that this particular language will solve that gap that we’ve identified with those examples,” Collins added.
“Given what we’ve seen in the West, I just think there’s some real scar tissue about market manipulation,” said MSC Chair Eric Blank, who also chairs the Colorado Public Utilities Commission. “This is just common-sense protection that it seems the lawyers for SPP and for the market participants have agreed to.”
Western commissioners brought the issue up during the Markets+ Participant Executive Committee meeting in January, requesting a clear definition of the participant obligation gap. (See “MMU, MSC to Collaborate,” SPP Markets+ Participants Executive Committee Briefs: Jan. 23-24, 2024.)
A 2022 FERC Notice of Proposed Rulemaking related to “duty of candor” would require all entities communicating with the commission or other organizations — e.g., the MMU — about FERC matters to provide “accurate and factual information” (RM22-20). (See FERC NOPRs Would Require ‘Candor,’ Improved Accounting for Renewables.)
The language will be brought forward for stakeholder approval during MPEC’s virtual meeting Feb. 20.
