FERC To Schedule Technical Conference on PJM Financial Transmission Rights Revenue Adequacy Proposal

FERC said that it will hold a technical conference concerning tariff revisions filed by PJM to address revenue inadequacy issues relating to its allocation of Auction Revenue Rights (ARR) and Financial Transmission Rights (FTR).

To address certain asserted inequities in the current ARR and FTR design, PJM proposes to: (i) eliminate negatively valued FTRs from netting against positively valued FTRs within an FTR holder’s FTR portfolio; and (ii) escalate current ARR results using a zonal load forecast growth rate of +1.5 percent in the Stage 1A 10-year simultaneous feasibility process.

FERC said that it could not decide the merits of PJM's proposed changes and various protests on the record before it, and said that it will hold a technical conference. Issues to be addressed at the conference include, but are not limited to: (i) ARR modeling and allocation processes; (ii) treatment of portfolio positions in allocating underfunding or surplus among FTR holders and the potential for market manipulation; and (iii) balancing congestion in ARR/FTR product design

Dockets EL16-6-001, ER16-121-000