September 21, 2014
FERC Commissioners at Odds over ISO-NE Capacity Auction

FERC called for changes in ISO-NE’s capacity market rules but split over whether it should reject the results from the ISO’s February auction due to unchecked market power.

UTC Trading Falls Following FERC Order
Up-to-congestion trading plummeted by about two thirds this week following a FERC order that could result in sharply increased costs for traders. -more-
Generators: Capacity Performance Unrealistic, Unfair
Generators said yesterday that PJM’s expectations for its Capacity Performance product are unrealistic and its proposed penalties unduly harsh. -more-
PJM Board Orders Filing on Capacity Parameter Changes
PJM’s Board of Managers will seek approval of changes in the capacity auction parameters despite load-serving entities’ requests that it delay action pending consideration of staff’s Capacity Performance proposal. -more-
PJM Members, Monitor Skeptical of Capacity Market Overhaul
Market Monitor Joe Bowring and stakeholders representing load expressed doubts last week about PJM’s latest capacity market proposals, questioning the cost and need for what Bowring called a “dramatic redesign” of the market. -more-
Dynegy: Change MISO Capacity Rules or We’ll Join PJM
Dynegy said last week it may seek to move its Illinois generation to PJM unless MISO changes its capacity market rules. -more-
The News from FERC
PJM Under Scrutiny at FERC Uplift Hearing
At FERC's technical conference on uplift yesterday, PJM was a target for criticism from market participants smarting over the $600 million uplift bill from January’s polar vortex. -more-
Dust Settled, LaFleur Sees Improved Morale at FERC
With a disruptive confirmation process behind her, Federal Energy Regulatory Commission Chairman Cheryl LaFleur said she believes morale at the agency is improving as she attempts to make progress on priority issues before she turns over the gavel to Norman Bay in April. -more-
FERC Unveils Metrics for Measuring RTO Performance
FERC has developed a comprehensive scorecard for comparing the performance of RTOs and ISOs, as well as utilities outside of organized markets. -more-
FERC Orders Review of UTC Rules
FERC last week ordered a review of PJM’s rules regarding up-to-congestion transactions (UTCs), saying the RTO may be discriminating in how it treats these and other financial trades. -more-
FERC Questions PJM Capacity Offer Cap
PJM’s Market Monitor overstepped its authority in calculating the maximum price generators can offer into capacity auctions, but the RTO’s Tariff may need to be changed to prevent a windfall to generators, the Federal Energy Regulatory Commission ruled. -more-
FERC Rejects Duke Affiliates’ Capacity-Sharing Deal
FERC rejected an agreement between Duke Energy Carolinas and Duke Energy Progress to share capacity, saying the deal would be discriminatory. -more-
NYISO Sees Capacity Crunch by 2019; Tx Problems in 2015
Some areas of New York could face transmission violations as soon as next year and capacity shortages are likely by 2019, according to NYISO. -more-
NYISO OKs Mandatory Black Start Rules for Con Ed Region
The NYISO Management Committee approved a mandatory black start requirement in the Consolidated Edison territory, despite opposition by generators who said the previous voluntary system had been working well. -more-
More PJM News
Duke, Dominion Propose 550-Mile, $5 Billion Pipeline for Shale Gas
Duke Energy, Dominion Resources and other partners last week proposed a 550-mile, $5 billion pipeline to carry natural gas from the Marcellus and Utica shale formations to Virginia and eastern North Carolina. -more-
Appeals Court Scolds FERC over West Deptford Interconnection Dispute
The D.C. Circuit Court of Appeals vacated FERC's ruling in a dispute between West Deptford Energy and PJM over interconnection costs. -more-
PJM IMM Questions MISO Cost Recovery Ruling
PJM’s Market Monitor has weighed in on a MISO dispute over whether generation owners can be compensated for their plants’ sunk costs when the plants are prevented from retiring in order to maintain grid reliability. -more-
PJM Drops Plan for Real-Time Reserve Market
PJM has dropped a proposal to create a new real-time reserve market, bowing to stakeholder concerns over the cost and complexity of a solution that would be implemented only a few times a year. -more-
Winter Testing Could Cost $15.9M
PJM’s plans to conduct winter tests of infrequently used generators could cost as much as $15.9 million, officials told the Operating Committee last week. -more-
Members to Consider Changing Credit Rules Despite PJM Opposition
Members agreed last week to consider changing credit requirements for virtual transactions in January and February 2015 despite opposition from PJM. -more-
TEAC Briefs
A round-up of news from the PJM Transmission Expansion Advisory Committee on Sept. 2, 2014. -more-
Planning Committee Briefs
A round-up of news from the PJM Planning Committee on Sept. 2, 2014. -more-
MIC Briefs
A round-up of news from the PJM Market Implementation Committee on Sept. 3, 2014. -more-
Operating Committee Briefs
A round-up of news from the PJM Operating Committee on Sept. 4, 2014. -more-
Company Briefs
News briefs on companies in the PJM Interconnection this week, including Duke Energy, Exelon, American Electric Power, Pepco and PPL. -more-
Federal Briefs
News briefs on the federal agencies that impact those doing business in PJM's footprint. This week, we highlight the Energy Department, NIST and the NRC. -more-
State Briefs
News briefs from the states within the PJM footprint. This week we include Delaware, Illinois, Indiana, Maryland, Michigan, New Jersey, Ohio, Virginia and West Virginia. -more-
PJM Board to Decide Capacity Rules
PJM Pitches New Capacity Product
PJM met with stakeholders Friday to discuss its plan for a new “Capacity Performance” product to improve reliability on peak demand days. -more-
Deadlock on Capacity Parameters
PJM members deadlocked last week on changes to capacity market parameters with none of five proposals winning a supermajority. -more-
Dynegy Back in the Game
Duke, ECP Deals Boost PJM Rank
Dynegy announced Friday it will nearly double its capacity with the purchase of about 12,400 MW of generation from Duke Energy and private equity firm Energy Capital Partners. -more-
Becomes ISO-NE Player Overnight
Dynegy’s purchase of Energy Capital Partners’ New England power plants will immediately make it a major participant in a market where it has been a bit player.  -more-
FERC: PJM Uplift Ranks High Among RTOs, ISOs
PJM has consistently had among the highest uplift rates among RTOs and ISOs, according to a Federal Energy Regulatory Commission report released last week. -more-
PJM Members Split over MRC/MC Meeting Site
Though a bridge to Wilmington has finally reopened, some PJM members want to continue holding MRC and MC meetings at the RTO's Conference and Training Center in Valley Forge, where the meetings have been held for the past two months. -more-
Split Panel Recommends Lifting $1,000 Offer Cap
A PJM task force has recommended lifting the $1,000 cap on cost-based energy offers, but the margin suggests the proposal may have a tough time winning final stakeholder approval. -more-
Monitor: Resist Subsidies, Don’t Retreat from Markets
PJM's Market Monitor used his newest State of the Market report to repeat longstanding recommendations and warn stakeholders not to overreact to the winter’s extreme weather. -more-
A summary of measures approved by the PJM Markets and Reliability and Members Committees on Aug. 21, 2014. -more-

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