Docket Nos.: ER23-729 and EL23-19
Date filed: January 20, 2023
Agency: FERC
Summary:
On January 20, 2023, EPSA filed at the FERC a protest and expert affidavit of Dr. Paul Sotkiewicz in response to the December 23, 2022, PJM section 205 and section 206 filings to revise its RPM Locational Deliverability Area (LDA) Reliability Requirements to address what PJM says was an anomaly in a small LDA, Delmarva Power & Light South (DPL-S), during the December BRA for the 2024/2025 Delivery Year (DY). The December 23 PJM filings followed the very unusual action by PJM to delay formal posting of the BRA results (which would have posted December 20 based on the BRA schedule). The filings would allow PJM to address the model during the auction clearing process.
As explained in the EPSA protest and affidavit, the PJM filings must be rejected because the filed rate doctrine and rule against retroactive ratemaking bar PJM from modifying the rules governing the 2024/2025 BRA. Moreover, even aside from that serious legal infirmity, EPSA explains that PJM’s proposed modifications are unjust and unreasonable because they would make it impossible for market participants to rely on the auction parameters posted by PJM ahead of each auction, deter bilateral contracting and investments, and result in prices that do not reflect reliability needs. EPSA emphasizes this is particularly true because PJM has repeatedly demonstrated a bias for actions that will push down prices while failing to make fixes that will ensure that resources necessary for reliability remain in the market.
