FERC Filings
EPSA's Motion to File Out Of Time For Proceedings Consolidation and Request A Technical Conference on PJM's
Motion to Consolidate and Convene a Technical Conference
The Commission should consolidate the interrelated dockets that hinge on the N3P Test and convene an on the record technical conference where stakeholders, PJM and its market monitor and the Commission can share data and discuss the issues associated with the test, including alternative proposals for location-based market power mitigation mechanisms. To date, each proceeding dependent on PJM’s N3P Test, is caught in a number of time-consuming proceedings in which PJM defends the use and substance of the N3P, stakeholders object to the lack of explanatory data and support for the test, alternative mechanisms are proffered by market participants, and the Commission continues to question the N3P test and subsequent PJM affidavits. The result so far has been a lack of resolution which now pervades both of the instant proceedings. Consolidating the interrelated dockets and convening a technical conference can bring to light the technical details associated with the N3P Test, allow for questions and answers among stakeholders, and the Commission and include potential variations or other tests to be considered. The conference would highlight the benefits and drawbacks of each alternative for the Commission. After the conference the Commission should issue an order outlining the issues raised and direct PJM to file tariff language that details the specific test process that will be used.
By convening a technical conference the Commission can use an approach that can save time and money, and avoid unnecessary, protracted litigation. The use of an on the record technical conference was effective for the Commission when addressing the New York Independent System Operator’s installed capacity demand curve proceeding Docket No. ER05-428-000. The use of a technical conference helped to move that proceeding to resolution.
EPSA and its members have consistently questioned the basis and support for the N3P test and PJM’s approach to market mitigation in load pockets. EPSA’s concerns are:
• PJM’s N3P Test is not a reasonable screen for determining market power in load pockets and is not derived from Commission-accepted market power screens.
• PJM has not provided adequate support for the N3P test as preferable to the Commission’s accepted market power screens (AEP Screens).
• The elements of local market structure are not evaluated in the same manner in the N3P Test as they are in the Commission accepted screens used in AEP Order.
• PJM has not presented a detailed process that can be included in its tariff, to test transmission constraints occurring in day-ahead and real-time markets while ensuring just and reasonable rates.
• PJM has not shown why less restrictive tests such as two pivotal supplier test or certain proposed modifications to the N3P Test are not appropriate.
These points can best be addressed within the context of a technical conference that will allow for open discussion between PJM, market participants and Commission staff, allowing all stakeholders to get greater clarity on the issues and concerns. Based on discussion from that technical conference, the Commission will be able to set out clear guidance for PJM’s mitigation mechanisms.