[Federal Register: May 27, 2009 (Volume 74, Number 100)]
[Notices]
[Page 25234-25235]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr27my09-29]
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DEPARTMENT OF ENERGY
Federal Energy Regulatory Commission
[Docket Nos. ER05-1410-000; EL05-148-000; ER09-412-000]
PJM Interconnection L.L.C.; Notice of Filings
May 19, 2009.
On March 26, 2009, the Commission issued an order accepting new
tariff provisions relating to PJM Interconnection, L.L.C. (PJM's)
Reliability Pricing Model (RPM) capacity market, including changes to
the procedures governing Incremental Auctions that became effective
March 27, 2009.\1\ One such revision was to the table of default
Avoidable Cost Rate (ACR) values for the Base Residual Auction and
three subsequent Incremental Auctions that PJM administers for each
Delivery Year. Capacity suppliers who fail the market power test may
use these ACR values as default bids when they offer capacity into the
Incremental Auctions.
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\1\ PJM Interconnection, L.L.C., 126 FERC ] 61,275 (2009).
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On April 29, 2009, the PJM Market Monitor filed a letter to the
Commission stating that, due to an oversight on its part, it believes
the ACR values contained in those provisions are higher than
appropriate for the upcoming Incremental Auctions in June 2009 and
January 2010. The Market Monitor is concerned that use of these ACR
values may lead to non-competitive market outcomes in the first
Incremental Auction (June 1-5, 2009) for Delivery
[[Page 25235]]
Year 2011/2012 and the third Incremental Auction (January 4-8, 2010)
for Delivery Year 2010/2011 and asks the Commission to take action as
necessary to correct this condition, if it agrees with the Market
Monitor's views regarding non-competitive market outcomes.
PJM filed a responsive letter on April 29, 2009, containing
correspondence between PJM and the Market Monitor. In this
correspondence, PJM stated that, in its view, an expedited tariff
change is not necessary, and that it believes that the prices produced
by use of the ACR values accepted in the March 26 Order will lead to
rates that are within the range of reasonable variation. PJM also
stated that the RPM market design does not anticipate the default ACR
values changing for each Delivery Year, and recommends that rather than
seeking a tariff change on an emergency basis, PJM's stakeholders
should consider this issue and, if they so choose, present this issue
to the Commission in an orderly fashion. Therefore, while indicating
that ACR changes are not feasible or advisable for the June 2009
Incremental Auction, PJM commits to add the topic of default ACR values
to the agenda for the Capacity Markets Evolution Committee as an item
to be discussed and resolved by stakeholders by September 1, 2009.
The Commission encourages electronic submission in lieu of paper
using the ``eFiling'' link at http://www.ferc.gov. Persons unable to
file electronically should submit an original and 14 copies of comments
to the Federal Energy Regulatory Commission, 888 First Street, NE.,
Washington, DC 20426.
This filing is accessible on-line at http://www.ferc.gov, using the
``eLibrary'' link and is available for review in the Commission's
Public Reference Room in Washington, DC. There is an ``eSubscription''
link on the Web site that enables subscribers to receive e-mail
notification when a document is added to a subscribed docket(s). For
assistance with any FERC Online service, please e-mail
FERCOnlineSupport@ferc.gov, or call (866) 208-3676 (toll free). For
TTY, call (202) 502-8659.
Comment date: June 3, 2009.
Kimberly D. Bose,
Secretary.
[FR Doc. E9-12214 Filed 5-26-09; 8:45 am]
BILLING CODE 6717-01-P