FERC Filings
COMPLAINT REQUEESTING FAST TRACK PROCEDURES, PJM INTERCONNECTION, L.L.C.
INTRODUCTION AND SUMMARY
This dispute is straightforward, time-sensitive and crucial to the proper functioning of the PJM Interchange Markets.
In August 1999, the OI brought to the attention of the PJM Energy Market Committee a concern about constraining operating requirements on generator bids during certain emergency situations. Additionally, the OI "stated that PJM will conduct a market power analysis of bidding behavior during high-priced periods of time."<sup>1</sup>
Rather than acting at that time or subsequently to work with the appropriate PJM entities to arrive at a workable solution to OI concerns and to make a subsequent FERC filing pursuant to its proper authority under the appropriate filed rate schedules, including the PJM Open Access Transmission Tariff ("OATT"), the PJM Operating Agreement ("Operating Agreement"), which is incorporated by reference in Attachment G of the OATT, the PJM Interchange Energy Market Tariff, which is attached as Schedule 1 to the Operating Agreement and which is Attachment K to the OATT ("Market Tariff"), or the PJM Market Monitoring Plan, which is Attachment M to the OATT ("MMP"), the OI decided to act unilaterally to make changes to the compensation due to providers of Operating Reserves, without making any FERC filing.
The MMU Manager sent a letter (attached hereto as Exhibit B) to the PJM Members Committee on December 16, 1999 announcing that PJM would, as a short term solution, take unilateral action to address an alleged "market design flaw" (without any FERC filing) and that this action would be implemented by modifications to PJM Manuals to be effective on January 1, 2000. In a December 30, 1999 letter (attached hereto as Exhibit C) to the PJM Energy Market Committee, the MMU Manager announced that PJM would make a change to the PJM Manual for Operating Agreement Accounting ("PJM OAA Manual") that would eliminate certain payments for Operating Reserves during any day for which PJM declares a Maximum Emergency Generation Alert. PJM's modification eliminating certain payments for Operating Reserves has never been filed or otherwise submitted by PJM to the Commission.
This PJM action clearly relates to rates, terms and conditions in the PJM energy market and cannot be effective absent a filing by PJM pursuant to Section 205 of the FPA and acceptance or approval by the Commission making the rate schedule effective. The Complainants request that the Commission issue an order finding that PJM's attempt to eliminate certain payments for Operating Reserves by altering a PJM Manual is in violation of PJM's valid filed FERC rate schedules, and is invalid and without legal effect.
In addition to binding federal law, there are also strong policy reasons to require PJM to abide by its filing requirements. Unilateral modifications to the filed FERC rate schedules are inconsistent with the filed FERC rate schedules which PJM Members drafted, negotiated and to which the PJM Members agreed and FERC approved. Also, market participants should receive proper notice of a proposed change and an opportunity to be heard.
Fast Track procedures are required and are for the benefit of all interested persons, since PJM is now operating in violation of its currently filed FERC rate schedules and has been doing so since January 1, 2000.