In an order on remand concerning marginal loss surplus allocation, FERC has ordered that PJM must pay refunds of misallocated marginal line loss over-collection amounts in excess of those that would have been paid under the just and reasonable rate.

Specifically, FERC is requiring PJM to pay misallocated marginal line loss over-collection amounts to those Financial Marketers that engaged in Up-To-Congestion transactions.

"We further find that PJM has the authority to collect such refunds from the parties that received an overpayment of the line loss credit," FERC said

Some Financial Marketers have not returned to PJM the refunds they previously received; FERC will allow such Financial Marketers to retain the amount of refunds they are due.

However, in computing the amount of refunds and amounts that may be retained by Financial Marketers, PJM should treat MISO customers that export energy from the PJM region to MISO (the exporters) on an equal basis to PJM load, FERC said

"We also find that PJM has authority to impose surcharges if necessary to implement this refund requirement, but should not surcharge the exporters," FERC said

FERC authorized PJM to calculate the surcharges owed by PJM load and the exporters based on their proportionate share of the marginal line loss allocations taking into account the payment of refunds.

"PJM is hereby directed to: (1) pay refunds, with interest, and collect surcharges necessary to collect funds with which to pay those refunds, as discussed in the body of the order; and (2) allow Financial Marketers to retain the calculated amount of refunds that were previously paid to them," FERC directed

See FERC's order for more details