PJM Says Collateral Appears Sufficient To Cover Obligations Of Latest MP Which Has Defaulted
Confirms No Default Allocation Cost To Members From MP Which Defaulted Earlier This Year
April 8, 2022 Email This Story Copyright 2010-21 EnergyChoiceMatters.com
Reporting by Paul Ring • firstname.lastname@example.org
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PJM issued a market notice stating that, after a final resolution of settling all the positions of market participant (MP) Hill Energy Resource & Services, LLC, which defaulted at PJM in January, there will be no default allocation cost to the PJM membership as a result of the Hill FTR default.
The total costs to resolve the Hill FTR defaulted portfolio, including liquidation, positions that have gone to settlement, costs from prior sales, and expected administration fees were $1,168,786. PJM is holding $6,123,868 in collateral with which to cover this loss, which results in an excess remaining credit of $4,955,082.
PJM is in contact with Hill’s legal representation regarding the disposition of the remaining collateral and resolution of the litigation, including Hill’s counterclaim, PJM said
Separately, PJM said in another market notice that Volunteer Energy Services Inc.'s collateral held by PJM appears sufficient to satisfy Volunteer's obligations to PJM. A PJM payment default by Volunteer, which as previously reported entered Chapter 11 bankruptcy, occurred on April 5, 2022
PJM has terminated Volunteer’s rights to transact business in PJM's markets. PJM said that, in accordance with an order of the Bankruptcy Court and state law, the appropriate actions to transfer Volunteer’s retail electric customers were initiated March 31, effective April 1