VALLEY FORGE, Pa. — The Markets and Reliability Committee discussed a request from the PJM Board of Managers that stakeholders consider endorsing revising the RTO’s governing documents to transfer filing rights for regional transmission planning from the membership to the board. (See “TOs Considering Handing PJM Transmission Planning Filing Rights,” PJM MRC/MC Briefs: Feb. 22, 2024.)
The proposal comes as members of the Transmission Owners Agreement-Administrative Committee (TOA-AC) discuss similar revisions to the Consolidated Transmission Owners Agreement (CTOA) — moving filing rights over planning matters from the Operating Agreement (OA) to the Tariff.
Any changes to the CTOA would require the approval of the TOA-AC and the Board of Managers, which requested the Members Committee vote on the changes in an April 17 letter to the Organization of PJM States Inc. (OPSI). That vote is slated for the MC’s May 6 meeting.
PJM Director of Stakeholder Affairs Dave Anders said the board’s determination that members should weigh in on the change came after stakeholders voiced concern about how a significant change to the balance of authority between the RTO and its members is being considered, including through letters sent to the PJM board by OPSI and the Consumer Advocates of the PJM States (CAPS).
Jessica Lynch, PJM associate general counsel, said the changes would delete Schedule 6, which details the Regional Transmission Expansion Plan (RTEP) protocol, from the OA and add largely matching language to a new Schedule 19 in the Tariff.
General Counsel Chris O’Hara said if the MC endorsed the revisions and the Board of Managers opted to pursue them, the TOA-AC still would need to agree to corresponding changes to the CTOA. He said the PJM board has not ruled out making a Federal Powers Act (FPA) Section 206 filing asking FERC to grant the RTO filing rights if the MC voted against endorsing the proposed language.
Asked where PJM staff stands on the proposal, Vice President of Planning Paul McGlynn said expanding the RTO’s filing rights could allow it to make necessary planning decisions as the grid faces new realities.
“The system is changing dynamically right now. We’re seeing load growth like we have not seen in years, new generation retiring, new generation interconnecting … I do think it’s appropriate and I’m supportive of moving the protocol into the tariff,” he said.
CAPS Executive Director Gregory Poulos said advocates remain frustrated by the pacing of the changes and the lack of information about their potential impact on transmission costs, one of the largest portions of consumers’ electric bills, he said.
“I think there’s a significant amount of frustration that this is being pushed or rushed upon them,” Poulos said of consumer advocates.
Anders said the Board of Managers has asked that members vote on the changes in May to inform its thinking as the TOA-AC aims to conduct its own vote on the CTOA changes, also in May. Poulos questioned why the timeline the TOA-AC has set for itself appears to be defining the time the board and membership have to deliberate.
Adrien Ford, Constellation Energy’s director of wholesale market development, said it’s important PJM members be provided an opportunity to convey their perspectives to the Board of Managers through an endorsement vote.
Paul Sotkiewicz, president of E-cubed Policy Associates, questioned what members would have to gain by giving up filing rights and said the main difference in having the filing rights in the Tariff over the OA would be granting PJM the ability to override stakeholders with an FPA Section 205 filing.
McGlynn responded that PJM still would intend to go through the full stakeholder process to vet proposals, but that it would more appropriately complement PJM’s role as an independent planner to have filing authority.
Asim Haque, PJM senior vice president of governmental and member services, said last year’s critical issue fast path (CIFP) process focused on resource adequacy underlines how holding filing rights can allow PJM to conduct a stakeholder process to solicit proposals from membership to inform its thinking, but still have the authority to bring a filing to FERC if consensus cannot be found. That power could address goals pursued through the stakeholder process, including bringing renewable generation onto the grid, limiting the number of costly reliability-must-run contracts and reducing the backlog of resources in the interconnection queue.
Sotkiewicz argued the CIFP process is a cautionary tale for stakeholders, as the filings PJM ultimately brought to the commission varied significantly from the options the Members Committee most supported.
“To me you’re making an argument to keep everything in the OA,” he said.
