FERC Approves Changes in PJM-MISO JOA

FERC approves changes to the market-to-market procedures contained in the Interregional Coordination Process, section 4, of the Joint Operating Agreement (JOA) between the Midcontinent ISO and PJM, which are meant to enhance the day-ahead market-to-market coordination procedures and their real-time market-to-market settlement payments.

Specifically, FERC said that the adopted revisions will allow the RTOs to exchange Firm Flow Entitlements as often as such an exchange would provide benefits, rather than only exchanging Firm Flow Entitlements "infrequently."

The adopted revisions also clarify the deadlines for requesting Firm Flow Entitlement exchange, responding to a request, and rescinding an approved request, FERC said

Furthermore, the adopted revisions provide greater consistency in the settlement calculation for congestion relief in the day-ahead and real-time markets, FERC said

The RTOs had said that they had identified two potential benefits to exchanging unused Firm Flow Entitlements on a day-ahead basis for specifically targeted Market-to-Market Flowgates: (1) minimization of joint-bid production cost, resulting in overall savings to the RTOs; and (2) minimization of real-time market-to-market payments, which could result in improvements for Financial Transaction Right (FTR) funding.

FERC dismissed concerns raised by protestors, which had sought additional information or simulations before adoption

FERC also said that the RTOs' commitment to post, on their websites, "after the fact" data on Firm Flow Entitlements and flowgates daily for the previous operating day adequately addresses concerns about transparency raised by protestors

FERC's approval was subject to the filing of clarifying language in the RTOs' respective tariffs and JOA documents

Docket ER15-2613 et. al.