PJM Market Monitor Issues Opinion On Energy Price Offers In Excess Of $1,000/MWh
PJM's Independent Market monitor issued a market message to inform PJM market participants that it is the opinion of the Independent Market Monitor for PJM that:
"The PJM OATT and Operating Agreement require that all incremental energy offers exceeding $1,000 per MWh be cost based. An incremental energy offer on the price offer schedule that exceeds $1,000 per MWh cannot exceed the incremental energy offer on the cost offer schedule for the corresponding MW level. If the price offer does exceed the cost offer for a corresponding MW level, the cost offer schedule must be used. A price offer over $1,000 per MWh that exceeds the cost offer at any MW level constitutes a tariff violation.
"From the OA, Section 1.10.1A (d) (viii), offers:
'Shall not exceed an energy offer price of $1,000/megawatt-hour for all generation resources, except (1) when a Market Seller’s cost-based offer is above $1,000/megawatt-hour and less than or equal to $2,000/megawatt-hour, then its market-based offer must be less than or equal to the cost-based offer; and (2) when a Market Seller’s cost-based offer is greater than $2,000/megawatt-hour, then its market-based offer must be less than or equal to $2,000/megawatt-hour;'"