November 1, 2014
Coalitions Make Their Cases to PJM Board

Fourteen coalitions representing more than 80 stakeholders submitted briefing papers to the PJM Board of Managers Tuesday on the RTO’s Capacity Performance proposal. Don’t have time to read all 150 pages? No worries. We’ve summarized the groups’ concerns here.

EPSA Stay Complicates PJM’s 2015 Capacity Auction Plans
PJM officials are developing contingency plans for their 2015 capacity auctions in the wake of last week’s stay of the D.C. Circuit Court of Appeals’ EPSA ruling.
PJM, IMM Post Capacity Performance Cost-Benefit Analysis as Members Form Battle Lines
A cost-benefit analysis released by PJM and the IMM says the RTO's proposed Capacity Performance product would cost ratepayers as much as $6 billion over the next four years.
Gates Bros., FERC Seeking Settlement?
The Gates brothers, accused of gaming up-to-congestion trades in PJM, abruptly ended their public relations campaign against FERC last week.
MRC/MC Preview
Our summary of the issues scheduled for votes at the PJM MRC and MC on 10/30/14. 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.
Wisconsin Utilities Seek Rate Changes in Rooftop Solar Battle
Wisconsin utilities are joining those in sunnier climes in treating distributed solar as an existential threat.
PJM Grid 20/20 Panelists Debate Solar, New Rate Structures
In the face of rising residential usage of rooftop solar panels, new rate structures are needed, said attendees of PJM's Grid 20/20 conference last week.
Michigan Gov.: Wisconsin Energy-Integrys Merger Could Stifle Competition
Wisconsin Energy’s proposed $9.1 billion acquisition of Integrys Energy Group has generated some notable opposition — including Michigan Gov. Rick Snyder.
The News from New York
New York Utilities Increase Gas Hedges Ahead of Winter
Chastened by January’s price spikes, New York electric utilities are hedging 70% of their natural gas purchases this winter, up from 55% last year.
NYPSC Upholds Dunkirk Repowering Ruling
The New York Public Service Commission Thursday reiterated its approval of NRG Energy’s request to convert the Dunkirk coal-fired generator to natural gas.
The News from FERC
FERC Removes 10% Adder from Generators’ Make-Whole Payments
FERC said PJM should not have included a 10% adder in its calculation of make-whole payments to generators whose costs exceeded the offer cap last winter.
FERC Opens Investigations Probing Generators, Potential Gas Index Gaming
FERC has opened three investigations into questionable activity from last winter but has not found evidence that “widespread or sustained market manipulation” contributed to high natural gas and power prices.
Company Briefs
News briefs on companies in the PJM Interconnection this week, including PSEG, Duke, FirstEnergy, AEP, Ameren, Constellation and General Motors.
Federal Briefs
News briefs on the federal agencies that impact those doing business in PJM's footprint. This week, we highlight FERC, the NRC and the Energy Department.
State Briefs
News briefs from the states within the PJM footprint. This week we include Delaware, D.C., Illinois, Indiana, Kentucky, Maryland, Michigan, New Jersey, North Carolina, Ohio, Pennsylvania, Virginia and West Virginia.
Va. SCC Staff Blasts EPA Carbon Rule
The EPA’s proposed regulations on carbon emissions would increase electric bills and harm reliability, Virginia SCC staff members said.
NETOs to Pay Refunds in ROE Case
FERC affirmed its June order reducing the return on equity for the NETOs, ordering the companies to provide refunds from Oct. 1, 2011.
OPSI Annual Meeting 2014
State Officials Challenge EPA Assumptions on Carbon Rule
State officials and generation owners promised last week to challenge the assumptions the EPA used in its proposed carbon rule.
‘Poof’ Goes the Demand Response?
Demand response aggregators told PJM officials that the RTO’s proposed response to a court ruling narrowing federal jurisdiction over DR is overly broad.
APPA Study Rekindles Capacity Debate
The American Public Power Association says a new study proves that the mandatory capacity markets in PJM, ISO-NE and NYISO don't adequately incent new generation.

 
PJM, IMM Post Capacity Performance Cost-Benefit Analysis as Members Form Battle Lines
A cost-benefit analysis released by PJM and the IMM says the RTO's proposed Capacity Performance product would cost ratepayers as much as $6 billion over the next four years.
Revised Capacity Performance Plan Wins Bowring’s Support
PJM’s Oct. 7 revisions to its Capacity Performance proposal appear to have won over Independent Market Monitor Joe Bowring.
FERC Opens Investigations Probing Generators, Potential Gas Index Gaming
FERC has opened three investigations into questionable activity from last winter but has not found evidence that “widespread or sustained market manipulation” contributed to high natural gas and power prices.
The News from MISO
FERC Orders ROE Hearing on MISO TOs
FERC ordered a hearing on a complaint from MISO industrial customers that the 24 transmission owners’ return on equity (ROE) is too high.
IPL Wins Waiver from MISO Must-Offer Rule for Retiring Eagle Valley Units
FERC approved IPL’s request for a waiver from MISO’s must-offer requirement, relieving the company of having to replace the capacity from its retiring Eagle Valley units.
NIPSCO, Enviros Reach Pact on Renewables Pricing
NIPSCO has reached an agreement with environmentalists and consumer advocates on a new renewables tariff that will boost payments to small wind farms while cutting prices for solar power.
Exelon Building Zero-Emissions Allam Cycle Plant in Texas
Exelon is joining with two other companies to build an emission-free natural gas-fired power plant using a new technology called the Allam Cycle.
Are We Ready?
Coal Retirements, Pipeline Constraints Undermine Confidence for Next Winter
The reliability cracks that became apparent last winter are more than a function of the polar vortex. They exposed long-term challenges that will take years to address.
PJM Hoping Testing Makes the Difference Before Winter
PJM is hoping that testing of little-used generating units will ensure they are available if cold weather strains its reserve margin.
MISO: Reserves Eroding Before Winter
“The erosion of excess reserves understandably is of great concern to us all," Organization of MISO States President Eric Callisto told FERC.
NYISO: ‘Well Prepared’ for Winter
If you want to see the value of dual-fuel capability, look no further than New York, where 47% of the generation can run on oil or natural gas.
ISO-NE in Precarious Position for Winter
ISO-NE "will be in a precarious operating position for the next several winters due to the natural gas pipeline constraints," spokeswoman Marcia Blomberg said.

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