Merchant Generator in PJM Over-Collected Cost-Based Revenues

PSEG reported yesterday in releasing earnings that its PSEG Power merchant generation business, "has discovered that it incorrectly calculated certain components of its cost-based bids for certain generating units in the PJM energy market, with resulting over-collection of revenues related to its fossil fleet."

"Power has notified FERC, PJM and the PJM Independent Market Monitor on this issue. This issue is still under review, and we are unable to estimate the ultimate impact or predict any resulting penalties or other costs associated with the matter at this time. The company recognized a liability in the quarter related to this matter," PSEG said.