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EPSA Suggests Refinements to PJM's Well-Functioning Markets
EPSA Suggests Refinements to PJM's Well-Functioning Markets
EPSA Suggests Refinements to PJM's
Well-Functioning Markets
"... EPSA is generally supportive of the PJM filing, but asks the Commission to direct PJM to make several changes or provide additional information to enhance its compliance proposal, which will provide further benefits to its already well-functioning markets."
WASHINGTON, D.C. - The Electric Power Supply Association (EPSA) filed comments with the Federal Energy Regulatory Commission (FERC) suggesting improvements to the PJM regional market. EPSA's comments, submitted today in response to the RTO's Order 719 compliance filing, focus on market monitoring policies, scarcity pricing, state access to confidential information, and RTO governance. Order 719 refined elements of the organized wholesale electricity markets and required compliance filings by each RTO. EPSA applauds the RTO and FERC for continuing to make improvements to organized markets.
Significantly, EPSA supports PJMs market monitoring proposal and urges the Commission to approve it. EPSA's comments state that the PJM proposal "appropriately brings the tariff, which was written at the time the MMU [Market Monitoring Unit] function was internal and an integrated part of PJM, into conformance with Order No. 719 requirements to remove or limit MMU involvement in tariff administration, including prospective mitigation."
EPSA supports in principle PJM's preferred approach to implement an operating reserve demand curve on scarcity pricing. EPSA notes this endorsement is specific to PJM and recognizes other approaches may be preferred in other organized markets. Given the complexity of the scarcity pricing issue, EPSA does not oppose the requested extension of time until April 1, 2010, for PJM to file a proposal. However, EPSA requests that FERC order PJM and its stakeholders to adhere to the PJM proposed work plan and schedule. "By placing parameters around development of a final scarcity pricing proposal, the Commission is facilitating implementation of a more transparent price signal under peak conditions that will allow resources, including demand, to respond more efficiently and consequently, improve reliability," says EPSA.
The filing also addresses an individual state's access to confidential information through tailored requests to the market monitor. Order 719 not only gave market participants the ability to review such data for confidentiality concerns, but also the ability to provide context and supplement that data, EPSA says, but this opportunity is missing from the PJM filing. EPSA points to ISO New Englands information policy as a process to be emulated.
With regard to RTO governance, EPSA asks FERC to require a detailed report on a PJM stakeholder review that is underway to address, among other issues, opportunities to enhance the stakeholder process. The report should be separate from and in addition to any possible revisions in this area that PJM may propose in a subsequent filing.
EPSA Comments on PJM 719 Compliance Filing [ER09-1063-000, et al]
CONTACT: JOHN SHELK
(202) 349-0154or 703-472-8660
EPSA is the national trade association representing competitive power suppliers, including generators and marketers. These suppliers, who account for nearly 40 percent of the installed generating capacity in the United States, provide reliable and competitively priced electricity from environmentally responsible facilities serving global power markets. EPSA seeks to bring the benefits of competition to all power customers.