OPSI: Can't Support Duplication In Energy/Ancillary & Capacity Market Construct In PJM
In a letter to the PJM board concerning price formation issues, the Organization of PJM States, Inc. wrote, "OPSI cannot support duplication between energy/ancillary services markets and the capacity construct that would result in ratepayers paying twice for the same product or service, even in transition to a new market design. And this includes all phases of transition. Such an outcome is not just and reasonable."
"Nor can we support insufficiently supported non-market and administratively determined market design elements that do not reflect value to ratepayers in terms of operating reserve quantity risks they may face. PJM must provide detailed analyses to support its proposals and be thoroughly transparent with its data and simulations to allow independent verification and validation and proper evaluation of proposed market changes," OPSI said
"PJM’s currently proposed changes to the energy and operating reserve markets will increase costs to rate-payers. PJM has not shown increases at these levels to be necessary or that they will be implemented in a manner that will maintain just and reasonable rates. The drive by PJM to adopt these immediate and costly changes, without sufficient justification, does not provide an opportunity for states and stakeholders to engage in productive dialog to attain a thorough and meaningful understanding of proposed reforms and optimal solutions. Accordingly, OPSI requests the PJM Board to extend its January 31, 2019 dead-line terminating the stakeholder process and its intention for PJM to make an immediate FERC filing. Such accommodation by the PJM Board would allow for the appropriate analyses and discussion of these issues, which will greatly improve the likelihood of PJM and its stakeholders developing a proposal that is just, reasonable, and not unduly discriminatory," OPSI said