Date: September 26, 2023
Venue: Federal Energy Regulatory Commission
Proceeding: PJM CIP IROL Cost Recovery Proposal
Summary: In response to comments submitted by PJM’s Independent Market Monitor (“IMM”) in this proceeding, EPSA explains that there is no basis for the IMM’s claims that the opportunity to recover costs of complying with mandatory reliability standards under Section 219 of the Federal Power Act (“FPA”) is limited to investments in transmission facilities and that generators should only be allowed to recover such costs pursuant to their market-based rate tariffs. To the contrary, it is both lawful and appropriate that generators incurring costs because they are designated as IROL Critical Resources be allowed to recover those costs under cost-based rate schedules. Notably, the IMM’s preferred policy choice would have the perverse effect of putting resources that are, by definition and designation, essential to maintaining the reliability of the PJM Region at greater risk to exit the market than others.