The PJM Interconnection has filed with federal regulators a framework of eight governance reforms ahead of negotiations with stakeholders mediated by the Federal Energy Regulatory Commission in September.
“PJM is in need of a package of reforms that would enable PJM to act with greater speed/efficiency while maintaining a platform that operates transparently and allows for all voices to be heard,” states the term sheet outlining the reforms, which was presented to PJM stakeholders at the Aug. 19 Members Committee meeting.
“Greater definition of roles and responsibilities of PJM and the states (including the District of Columbia) as well as improved alignment between PJM, stakeholders and states is needed. Reforms should ultimately strengthen PJM’s independence, which will strengthen our public interest commitment to the 67 million consumers we serve," PJM said.
Executive Vice President Asim Haque and Executive Vice President and General Counsel Chris O’Hara presented the proposals at the Members Committee.
In an Aug. 10 notice to begin a dispute resolution process, FERC directed PJM to prepare the preliminary governance and stakeholder process reforms focused on major themes of a July 23 FERC technical conference. They include enhancing independence of the PJM Board of Managers, state participation, more efficient and timely stakeholder processes, transparency, and the allocation and exercise of Federal Power Act Section 205 filing rights across PJM’s governing documents.
“The terms on this sheet are an initial offering – we do expect this initial offering to evolve,” Haque told the Members Committee.
Specific terms proposed by PJM include:
• Expanding PJM Section 205 filing rights to include energy and ancillary services markets and the Regional Transmission Expansion Planning (RTEP) protocol
• Changing PJM’s stakeholder process to voting that is advisory instead of binding and providing for expedited consideration of issues
• Extending the PJM Board of Managers terms of service from three to nine years
• Granting the Organization of PJM States, Inc., access to Section 205 filing rights on certain matters of resource adequacy subject to certain conditions including a Member vote and a reliability safety valve
• Adding state-appointed representatives to the Nominating Committee for the PJM Board of Managers
Beginning Sept. 1, FERC mediators will convene stakeholders and states within a confidential dispute resolution process and evaluate actionable reforms.
PJM expects to present a package to its full membership at the Sept. 24 Members Committee meeting for review and approval.
Roles and Responsibilities for Resource Adequacy
PJM also shared a proposed Memorandum of Understanding Framework Between States and PJM at the Members Committee. Reliability and resource adequacy are shared responsibilities, and the document delineates roles and responsibilities at the wholesale and retail levels of jurisdiction, PJM said.
