By Suzanne Herel
FERC last week approved PJM’s creation of a funding mechanism to support the Consumer Advocates of the PJM States (CAPS) through a charge to electric customers.
Commissioner Tony Clark dissented from the vote, saying never before had FERC “endorsed the policy that the activities of non-decisional intervenor groups be funded through a dedicated utility tariff under the auspices of the [Federal Power Act]” and that it set a “troubling precedent” (ER16-561).
CAPS’ participation in the stakeholder process should be funded through the appropriations of state legislatures, Clark said.
Beginning next year, CAPS will receive an initial annual budget of $450,000. FERC approval would be needed for any budget increase of more than 7.5%.
“This authorized 7.5% annual increase is described in the filing as a way to ‘promote fiscal restraint,’” Clark wrote. “Only in government could a budget that allows for a near doubling every decade be considered parsimonious.”
The assessment for a residential consumer using 12,000 kWh per year would be eight-tenths of a cent. The charge will be itemized on customers’ bills.
The proposal was approved by PJM stakeholders in October by slightly more than 81% of a sector-weighted vote. (See PJM Members Agree to Fund Consumer Advocates Group.)
The group also would receive a one-time infusion of $350,000 from Exelon if the D.C. Public Service Commission approves the company’s acquisition of Pepco Holdings Inc. (See Exelon Not Quitting as Observers See Little Likelihood of Salvaging Pepco Merger.)
Those supporting the filing included the Independent Market Monitor, various state agencies, Exelon and the PJM Industrial Customer Coalition.
“The Market Monitor offers that [the] CAPS funding schedule is a ‘meaningful first step to obtain needed balance in the PJM stakeholder process’ and that ‘PJM consumers have been systematically underrepresented,’” the order said.
Opposing the funding were the PJM Power Providers Group, Talen Energy and Essential Power.
Protesters argued that FERC did not have the jurisdiction to approve the funding scheme, that PJM transmission customers that serve load would be forced to fund private speech with which they might disagree, and that CAPS’ comments cannot be considered government speech, in part because not all of its members are government representatives.
CAPS, made up of consumer advocates from PJM states and D.C., was formed in 2012 with start-up funding from a FERC enforcement settlement with Constellation Energy (IN12-7-00).
The budget approved by FERC may be used for staffing and travel costs for the consumer advocates to participate in meetings. The funding may not be used for activities related to the proceedings of state or federal agencies other than FERC, litigation of matters at FERC stemming from Tariff or operating agreement changes by PJM or the hiring of counsel or expert witnesses to support the filings of other parties.