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July 31, 2014
PJM Board Puts the Brakes on Artificial Island Selection

Facing a barrage of criticism from spurned bidders, state officials and others, PJM’s Board of Managers has delayed action on a recommendation that it select Public Service Electric & Gas to fix the Artificial Island stability problem. Instead, the board will allow PSE&G and other finalists to “supplement” their proposals in response to LS Power’s offer to cap its project cost at $171 million.

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At FERC, Uncertainty Remains Despite Norman Bay’s Nod
After a year of political wrangling, FERC finally has its fifth commissioner. But uncertainty will linger for months at the agency due to Norman Bay’s lack of a policy record and the unprecedented compromise that won his confirmation. -more-
MRC Preview
Our summary of the issues scheduled for votes at the PJM MRC on 07/31/14. Each item is listed by agenda number, description and projected time of discussion, followed by a summary of the issue and links to prior coverage. -more-
Why NY, Md. Democrats Dissed LaFleur
New Yorkers Upset over NYISO Capacity Zone
Senators from New York are angry over Cheryl LaFleur’s support for the New York ISO’s creation of a capacity zone in the Lower Hudson Valley that has led to increases in prices. -more-
As FERC Nears Cove Point Order, Opposition Continues
Senators from Maryland are upset that Cheryl LaFleur declined to hold more hearings regarding Dominion Resources' proposed liquefied natural gas export facility at Cove Point. -more-
PPL, Riverstone ID Plants for Sale in Talen Spinoff
PPL and Riverstone Holdings have offered to divest about 1,300 MW of generation from their 15,000-MW combined fleet to avoid market power concerns over their planned spinoff, Talen Energy. -more-
Superconductor to Strengthen Chicago Grid Against Attack
Commonwealth Edison is teaming with an engineering company to boost the reliability of Chicago’s electrical grid and protect it against terrorism by installing three miles of superconductor cable beneath the city’s Loop district. -more-
FERC: We’ll Have Last Say on Sabotage Rules
FERC tentatively approved a rule to protect the grid against physical threats after ordering changes to allow the commission to overrule transmission operators’ definition of “critical” facilities. -more-
Court Orders Response on Challenge to FERC Order 745 Ruling
The D.C. Circuit Court of Appeals signaled that it may take another look at the court’s order voiding FERC's authority over demand response compensation. -more-
Company Briefs
News briefs on companies in the PJM Interconnection. This week, we focus on Duke, Exelon, NRG and Dominion. -more-
Federal Briefs
News briefs on the federal agencies that impact those doing business in PJM's footprint. This week, we highlight the DOE, EPA, FERC and Department of the Interior. -more-
State Briefs
News briefs from the states within the PJM footprint. This week we include Delaware, D.C., Illinois, Indiana, Maryland, Michigan, New Jersey, Ohio, Pennsylvania and West Virginia. -more-
Senate Confirms Bay, LaFleur

The Senate today narrowly confirmed Norman Bay to the Federal Energy Regulatory Commission while easily approving a new term for acting chair Cheryl LaFleur.

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Losing Bidders Blast Artificial Island Choice
Two losing bidders for the Artificial Island transmission project have issued harsh critiques of PJM’s handling of the solicitation, seeking to persuade the Board of Managers to reject planners’ recommendation that the project be awarded to PSE&G. -more-
Report: PSEG, AEP, FE at Risk under New Returns on Equity Rates
PSEG, AEP and FirstEnergy are among the utilities with the greatest risk of seeing their transmission rates decline as a result of FERC’s new formula for determining returns on equity, according to a new report. -more-
Life without Demand Response: Higher Prices but No Reliability Crisis, Says Monitor
PJM capacity prices would increase sharply but reliability would not be threatened if a recent federal court ruling eliminated demand response from wholesale markets, the Market Monitor said. -more-
Growing Solar Industry at Crossroads in N.C.
North Carolina has unexpectedly become one of the fastest-growing destinations for solar energy developers in the nation, but a battle pitting the state's largest utilities against environmentalists could stop that growth in its tracks. -more-
SCC: Dominion IRP Lacks Analysis of Nuclear Plans
Virginia State Corporation Commission staff wants Dominion Virginia Power to conduct a risk analysis comparing reliance on natural gas-fired generation and constructing a third unit at its North Anna nuclear plant. -more-
PJM: Black Start Sources Ready to Replace Retiring Coal
PJM officials said they have acquired sufficient new black start capacity to replace coal-fired units that will retire over the next year due to environmental rules. -more-
PJM Considering IRM Change for Winter
PJM officials are considering boosting the RTO’s installed reserve margin (IRM) for winter as a result of its experience in January, when it narrowly avoided shedding load amid frigid temperatures and high outage rates. -more-
PJM Sets Sub-Zonal Pricing Interface for Demand Response at New Castle
PJM has created a closed loop interface to capture the pricing of demand response in a transmission sub-zone spanning the Pennsylvania-Ohio border near New Castle, Pa. -more-
Operating Committee Briefs
A round-up of news from the Operating Committee. -more-
Members OK Change Sought by Banks
Members gave initial approval to a manual change that will make it easier for banks to purchase capacity providers’ revenue streams. -more-
MIC OKs Initiative on Gas Unit Offers
Members approved yet another initiative to address reliability concerns over gas-fired generators, agreeing to consider changes to the way such units submit energy and capacity market offers. -more-

More from MACRUC

W.Va., Ky. Reluctant to Join PJM, RGGI in Carbon Reductions
PJM and state officials pledged to develop a regional plan to minimize the cost of complying with the EPA's carbon rule, but lawmakers in coal-dependent Kentucky and West Virginia may be more interested in fighting the regulation than in joining in. -more-
Physical Security Cure: More Transmission?
Planners seeking to protect the grid against physical threats should consider transmission alternatives as well as security measures, PJM's Mike Kormos told a conference of state regulators. -more-
State Regulators Call for Capacity Market Changes
State utlity regulators criticized rules that restrict states’ ability to contract for capacity last week at the Mid-Atlantic Conference of Regulatory Utilities Commissioners’ (MACRUC) annual education conference, and called on PJM and FERC for changes. -more-

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