On November 20, 2018, in FERC Docket No. ER19-383-000, PJM submitted for filing revisions to the PJM Tariff, Attachment K – Appendix, section 3.2, and the PJM Operating Agreement, Schedule 1, section 3.2, to establish a Regulation market benefits factor clearing threshold, to remove the use of minimally effective resources in the calculation of the Regulation Market Clearing Price (“RMCP”).

PJM said in a market notice that, "The proposed revisions will reduce the occurrence of large spikes in clearing prices that have recently been observed in PJM’s Regulation market by establishing a new rule under which RegD (dynamic) resources with a benefits factor of less than 0.1 will not clear in the Regulation market."

In its filing, PJM said, "Through this proposal, the frequency of such large upward clearing price fluctuations due to aberrations in the outcomes of certain formulas in the Tariff and Operating Agreement will be reduced, thereby decreasing the likelihood of unjust and unreasonable outcomes for Market Participants."

PJM requested the revisions become effective January 21, 2019.

See PJM's tariff filing for more

Tags:
PJM   Wholesale   Pricing  

Comment on this story


ADVERTISEMENT
NEW Jobs on RetailEnergyJobs.com
TPV-SALES-EXECUTIVE -- Back Office Provider -- Other
Sr-Market-Risk-Analyst -- Wholesale Supplier/Trader -- New York - New York City Metro
Head-of-Retail-Operations -- Wholesale Supplier/Trader -- Other
Energy-Regulatory-Specialist -- Other -- Other
More Stories on RetailEnergyX.com:
FERC Orders $230 Million In Penalties Against GreenHat, Related Parties '
UK Retail Supplier With US Affiliate In Talks To Secure 'New Funding'; Wholesale Prices Challenge
FERC Issues Show Cause Order To GreenHat With Proposed $229 Million Fine For Alleged 'Manipulation'
NRG To Trim Costs, Reviews Retail Pricing Structure After Direct Energy Acquisition '
Southeast Utilities Propose Centralized Intra-Hour Wholesale Electricity Exchange Market