PJM Interconnection, L.L.C.
2750 Monroe Boulevard
Audubon, PA 19403
Jacqulynn B. Hugee
Associate General Counsel
T: (610) 666-8208 | F: (610) 666-8211
jacqulynn.hugee@pjm.com
June 30, 2016
The Honorable Kimberly D. Bose, Secretary
Federal Energy Regulatory Commission
888 First Street, N.E. Room 1A
Washington, D.C. 20426
Re:
2099
PJM Interconnection, L.L.C., Docket No. ER16-_____-000
Compliance Filing to Remove Obsolete Language on Reassignments of Transmission
Capacity
Dear Secretary Bose:
Pursuant to section 205 of the Federal Power Act (“FPA”),1 section 35.13 of the Federal
Energy Regulatory Commission’s (“Commission”) regulations,2 and the Commission’s Order
No. 739,3 PJM Interconnection, L.L.C. (“PJM”) submits revisions to PJM Open Access
Transmission Tariff (“Tariff”), section 23.1 to remove obsolete language regarding price caps on
reassignments of transmission capacity.
PJM requests that the Commission issue an order
accepting this filing by no later than August 29, 2016, with an effective date of October 1, 2010.
1
16 U.S.C. § 824d.
2
18 C.F.R. § 35.13.
3
Promoting a Competitive Market for Capacity Reassignment, Order No. 739, 75 Fed. Reg. 58,293 (2010) (“Order
No. 739”); order on reh'g and clarification, Order No. 739-A, 135 FERC ¶ 61,137 (2011).
Kimberly D. Bose, Secretary
June 30, 2016
Page 2
I.
BACKGROUND
On February 16, 2007 the Commission issued Order No. 890,4 which revised the pro
forma Open Access Transmission Tariff (“OATT”) originally established in Order No. 888.5
Among the many components of Order No. 890, the Commission concluded “it is appropriate to
lift the price cap for all transmission customers reassigning transmission capacity.” 6 In Order
No. 890-A, the Commission reaffirmed this decision.7 However, because Commission staff was
conducting a multi-year study,8 the Commission further concluded “it is most appropriate to lift
the price cap on reassignments of capacity only to accommodate this study period and amend
section 23.1 of the pro forma OATT to reinstate the price cap as of October 1, 2010.” 9 The
Commission deferred a decision on whether to permanently lift the price cap until it could
review the results of the study.10
On April 15, 2008, PJM submitted an Order No. 890-A compliance filing that, among
other things, amended Tariff, section 23.1 to reinstate the price cap on reassignments of
4
Preventing Undue Discrimination and Preference in Transmission Service, Order No. 890, 72 Fed. Reg. 12,266
(2007) (“Order No. 890”), order on reh'g, Order No. 890-A, 73 Fed. Reg. 2984 (2008) (“Order No. 890-A”), order
on reh’g, Order No. 890-B, 123 FERC ¶ 61,299 (2008), order on reh’g and clarification, Order No. 890-C, 126
FERC ¶ 61,228, order on clarification, Order No. 890-D, 129 FERC ¶ 61,126 (2009).
5
Promoting Wholesale Competition Through Open Access Non-Discriminatory Transmission Services by Public
Utilities; Recovery of Stranded Costs by Public Utilities and Transmitting Utilities, Order No. 888, 61 Fed. Reg.
21,540 (1996), order on reh’g, Order No. 888-A, 62 Fed. Reg. 12,274 FERC (1997), order on reh’g, Order No. 888B, 81 FERC ¶ 61,248 (1997), order on reh’g, Order No. 888-C, 82 FERC ¶ 61,046 (1998), aff’d in relevant part sub
nom. Transmission Access Policy Study Group v. FERC, 225 F.3d 667 (D.C. Cir. 2000), aff’d sub nom. New York v.
FERC, 535 U.S. 1 (2002).
6
Order No. 890 at P 808.
7
Order No. 890-A at P 388.
8
In Order No. 890, the Commission directed staff to closely monitor the quarterly reassignment–related data
submitted by transmission providers to identify any problems in the development of the secondary market for
transmission capacity, and to prepare a report within six months of the receipt of two years worth of data. See Order
No. 890 at P 820.
9
Order No. 890-A at P 390.
10
Id.
Kimberly D. Bose, Secretary
June 30, 2016
Page 3
transmission capacity as of October 1, 2010, in conformance with the pro forma OATT. The
Commission accepted PJM’s amendment by letter order issued October 21, 2008.11 Meanwhile,
Commission staff collected and studied capacity reassignment data through the fourth quarter of
2009, and issued its report on April 19, 2010.12
On September 20, 2010, in Order No. 739, the Commission permanently lifted the price
cap on reassignments of transmission capacity based on the conclusions of the Staff Report.13
The Commission stated “[b]ecause the current OATTs reinstate the price cap as of October 1,
2010, transmission providers will need to revise section 23 of the pro forma OATT, as indicated
in Appendix B. We direct transmission providers to file these changes within 30 days from
publication of this Final Rule in the Federal Register.”14
Due to an administrative oversight, PJM did not file the required changes to Tariff,
section 23.1 within the timeframe directed by Order No. 739. However, PJM did not reinstate
price caps as of October 1, 2010, and at all times has acted consistent with the relevant orders.
To be clear, PJM has not applied price caps to reassignments of transmission capacity.15
Nonetheless, to avoid confusion or future inconsistencies with Order No. 739, PJM now seeks to
revise Tariff, section 23.1 as directed by Order No. 739.
11
PJM Interconnection, L.L.C., Docket No. OA08-101-000 (October 21, 2008) (unpublished letter order).
12
Staff Report on Capacity Reassignment, Docket No. RM05-17-000 (April 19, 2010), eLibrary No. 201004194000 (“Staff Report”).
13
Order No. 739 at P 25.
14
Order No. 739 at P 37.
15
PJM implemented Order No. 890 in its Open Access Same-time Information System (“OASIS”) on January 31,
2009. In preparation for making this filing, PJM reviewed its OASIS archives and confirmed that no price caps have
been applied to reassignments of transmission capacity, pursuant to Order No. 890 (P 808), either before or after
October 1, 2010.
Kimberly D. Bose, Secretary
June 30, 2016
Page 4
II.
DESCRIPTION OF REVISIONS
In accordance with the directive of Order No. 739,16 PJM proposes revisions to Tariff,
section 23.1 as follows:
23.1 Procedures for Assignment or Transfer of Service:
Subject to Commission approval of any necessary filings, a A Transmission
Customer may sell, assign, or transfer all or a portion of its rights under its
Service Agreement, but only to another Eligible Customer (the Assignee). The
Transmission Customer that sells, assigns or transfers its rights under its Service
Agreement is hereafter referred to as the Reseller. Compensation to the Reseller
shall not exceed the higher of (i) the original rate paid by the Reseller, (ii) the
Transmission Provider’s maximum rate on file at the time of the assignment, or
(iii) the Reseller’s opportunity cost capped at the Transmission Provider’s cost of
expansion; provided that, for service prior to October 1, 2010, c Compensation to
Resellers shall be at rates established by agreement between the Reseller and the
Assignee.17
III.
STAKEHOLDER PROCESS
For informational purposes, on June 7, 2016 and again on June 27, 2016, PJM presented
the enclosed revisions to Tariff, section 23.1 to the PJM Operating Committee and PJM
Members Committee, respectively. In both instances, no detailed stakeholder discussion or vote
was conducted or required, because in Order No. 739 the Commission was clear with its
directive and specified exactly what language should be deleted from Tariff, section 23.1.
IV.
EFFECTIVE DATE AND WAIVER REQUEST
PJM respectfully requests a retroactive effective date of October 1, 2010 for the enclosed
revisions consistent with the effective date established by the Commission in Order No. 739, and
effective dates of January 1, 2011 and July 14, 2011, respectively, for the intermediate revisions
16
Order No. 739 at P 37 and Appendix B.
17
OATT sec 23.
Kimberly D. Bose, Secretary
June 30, 2016
Page 5
to Tariff, section 23.1 filed with and approved by the Commission since October 1, 2010. PJM
respectfully requests waiver of the Commission’s notice requirement18 for this purpose.
Also, to the extent necessary or applicable, under Rule 207(a)(5) of the Commission’s
Rules of Practice and Procedure, 18 C.F.R. § 385.207(a)(5), PJM respectfully requests waiver of
the language in paragraph one of Tariff, section 23.1, to be deleted by this submission, for the
retrospective period beginning October 1, 2010. The Commission previously granted such
waivers when, as in this instance, (1) an underlying error was made in good faith, (2) the waiver
is of limited scope, (3) granting the waiver will resolve a concrete problem, and (4) granting the
waiver will not harm other parties. See, e.g., PJM Interconnection, L.L.C., 143 FERC 61,022
(2013) (granting limited retrospective tariff waiver where there is an underlying good faith error
and the three other conditions are met).
PJM respectfully submits the aforementioned waiver criteria are met in this case. The
failure to file the required Tariff changes directed by the Commission in Order No. 739 was a
good faith error caused by administrative oversight. The waiver is limited in scope and will
address a limited concrete problem in this specific instance. Finally, granting the waiver will not
harm other parties because PJM has not applied price caps to reassignments of transmission
capacity.
V.
DOCUMENTS ENCLOSED
With this transmittal letter, PJM submits the following attachments:
1) Attachment A – redlined version of the proposed revised section 23.1 of the PJM
electronic tariff; and
2) Attachment B – clean version of the proposed revised section 23.1 of the PJM
electronic tariff.
18
18 C.F.R. § 35.3(a)(1).
Kimberly D. Bose, Secretary
June 30, 2016
Page 6
VI.
CORRESPONDENCE AND COMMUNICATIONS
Correspondence and communications regarding this filing should be sent to the following
individuals:
Craig Glazer
Vice President–Federal Gov’t Policy
PJM Interconnection, L.L.C.
1200 G Street, N.W.
Suite 600
Washington, D.C. 20005
(202) 423-4743
craig.glazer@pjm.com
VII.
Jacqulynn B. Hugee
Associate General Counsel
PJM Interconnection, L.L.C.
2750 Monroe Boulevard
Audubon, PA 19403
(610) 666-8208
jacqulynn.hugee@pjm.com
SERVICE
PJM has served a copy of this filing on all PJM members and on all state utility
regulatory commissions in the PJM region by posting this filing electronically. In accordance
with the Commission’s regulations,19 PJM will post a copy of this filing to the FERC filings
section of its internet site, at the following link:
http://www.pjm.com/documents/ferc-
manuals/ferc-filings.aspx with a specific link to the newly-filed document, and will send an email on the same date as this filing to all PJM members and all state utility regulatory
commissions in the PJM region20 alerting them this filing has been made by PJM and is available
by following such link. If the document is not immediately available by using the referenced
link, the document will be available through the referenced link within twenty-four hours of the
filing. A copy of this filing will be available on the Commission’s eLibrary website at the
19
20
See 18C.F.R §§ 35.2(e) and 385.2010(f)(3).
PJM already maintains, updates, and regularly uses e-mail lists for all PJM Members and affected state
commissions.
Kimberly D. Bose, Secretary
June 30, 2016
Page 7
following
link:
http://www.ferc.gov/docs-filing/elibrary.asp
in
accordance
Commission’s regulations and Order No. 714.
Respectfully submitted,
/s/ Jacqulynn B. Hugee
Craig Glazer
Vice President–Federal Gov’t Policy
PJM Interconnection, L.L.C.
1200 G Street, N.W.
Suite 600
Washington, D.C. 20005
(202) 423-4743
craig.glazer@pjm.com
Jacqulynn B. Hugee
Associate General Counsel
PJM Interconnection, L.L.C.
2750 Monroe Boulevard
Audubon, PA 19403
(610) 666-8208
jacqulynn.hugee@pjm.com
with
the
CERTIFICATE OF SERVICE
I hereby certify that I have this day served the foregoing document upon each person designated
on the official service list compiled by the Secretary in this proceeding.
Dated at Audubon, PA, this 30th day of June, 2016.
/s/ Jacqulynn B. Hugee
Jacqulynn B. Hugee
Attorney for PJM Interconnection, L.L.C.
Attachment A
Revisions to the PJM Tariff
(Identified by Additional Cover Pages)
(Marked/Redline Format)
PJM Tariff, Section 23.1
(Effective 10/1/10 - Version 0.1.0)
23.1
Procedures for Assignment or Transfer of Service:
Subject to Commission approval of any necessary filings, aA Transmission Customer may sell,
assign, or transfer all or a portion of its rights under its Service Agreement, but only to another
Eligible Customer (the Assignee). The Transmission Customer that sells, assigns or transfers its
rights under its Service Agreement is hereafter referred to as the Reseller. Compensation to the
Reseller shall not exceed the higher of (i) the original rate paid by the Reseller, (ii) the
Transmission Provider’s maximum rate on file at the time of the assignment, or (iii) the
Reseller’s opportunity cost capped at the Transmission Provider’s cost of expansion; provided
that, for service prior to October 1, 2010, cCompensation to Resellers shall be at rates established
by agreement between the Reseller and the Assignee.
The Assignee must execute a service agreement with the Transmission Provider governing
reassignments of transmission service prior to the date on which the reassigned service
commences. The Transmission Provider shall charge the Reseller, as appropriate, at the rate
stated in the Reseller’s Service Agreement with the Transmission Provider or the associated
OASIS schedule and credit the Reseller with the price reflected in the Assignee’s Service
Agreement with the Transmission Provider or the associated OASIS schedule; provided that,
such credit shall be reversed in the event of non-payment by the Assignee. If the Assignee does
not request any change in the Point(s) of Receipt or the Point(s) of Delivery, or a change in any
other term or condition set forth in the original Service Agreement, the Assignee will receive the
same services as did the Reseller and the priority of service for the Assignee will be the same as
that of the Reseller. The Assignee will be subject to all terms and conditions of this Tariff. If the
Assignee requests a change in service, the reservation priority of service will be determined by
the Transmission Provider pursuant to Section 13.2.
Page 1
PJM Tariff, Section 23.1
(Effective 1/11/11 - Version 1.1.0)
23.1
Procedures for Assignment or Transfer of Service:
A Transmission Customer may sell, assign, or transfer all or a portion of its rights under its
Service Agreement, but only to another Eligible Customer (the Assignee). The Transmission
Customer that sells, assigns or transfers its rights under its Service Agreement is hereafter
referred to as the Reseller. Compensation to Resellers shall be at rates established by agreement
between the Reseller and the Assignee.
The Assignee must execute a service agreement with the Transmission Provider and
PJMSettlement governing reassignments of transmission service prior to the date on which the
reassigned service commences. The Transmission ProviderPJMSettlement shall charge the
Reseller, as appropriate, at the rate stated in the Reseller’s Service Agreement with the
Transmission Provider and PJMSettlement or the associated OASIS schedule and credit the
Reseller with the price reflected in the Assignee’s Service Agreement with the Transmission
Provider and PJMSettlementor the associated OASIS schedule; provided that, such credit shall
be reversed in the event of non-payment by the Assignee. If the Assignee does not request any
change in the Point(s) of Receipt or the Point(s) of Delivery, or a change in any other term or
condition set forth in the original Service Agreement, the Assignee will receive the same services
as did the Reseller and the priority of service for the Assignee will be the same as that of the
Reseller. The Assignee will be subject to all terms and conditions of this Tariff. If the Assignee
requests a change in service, the reservation priority of service will be determined by the
Transmission Provider pursuant to Section 13.2.
Page 1
PJM Tariff, Section 23.1
(Effective 7/14/11 - Version 2.1.0)
23.1
Procedures for Assignment or Transfer of Service:
A Transmission Customer may sell, assign, or transfer all or a portion of its rights under its
Service Agreement, but only to another Eligible Customer (the Assignee). The Transmission
Customer that sells, assigns or transfers its rights under its Service Agreement is hereafter
referred to as the Reseller. Compensation to Resellers shall be at rates established by agreement
between the Reseller and the Assignee.
The Assignee must execute a service agreement with the Transmission Provider and
PJMSettlement governing reassignments of transmission service prior to the date on which the
reassigned service commences. PJMSettlement shall charge the Reseller, as appropriate, at the
rate stated in the Reseller’s Service Agreement with the Transmission Provider and
PJMSettlement or the associated OASIS schedule and credit the Reseller with the price reflected
in the Assignee’s Service Agreement with the Transmission Provider and PJMSettlement or the
associated OASIS schedule; provided that, such credit shall be reversed in the event of nonpayment by the Assignee. If the Assignee does not request any change in the Point(s) of Receipt
or the Point(s) of Delivery, or a change in any other term or condition set forth in the original
Service Agreement, the Assignee will receive the same services as did the Reseller and the
priority of service for the Assignee will be the same as that of the Reseller. The Assignee will be
subject to all terms and conditions of this Tariff. If the Assignee requests a change in service, the
reservation priority of service will be determined by the Transmission Provider pursuant to
Section 13.2.
Page 1
Attachment B
Revisions to the PJM Tariff
(Identified by Additional Cover Pages)
(Clean Format)
PJM Tariff, Section 23.1
(Effective 10/1/10 - Version 0.1.0)
23.1
Procedures for Assignment or Transfer of Service:
A Transmission Customer may sell, assign, or transfer all or a portion of its rights under its
Service Agreement, but only to another Eligible Customer (the Assignee). The Transmission
Customer that sells, assigns or transfers its rights under its Service Agreement is hereafter
referred to as the Reseller. Compensation to Resellers shall be at rates established by agreement
between the Reseller and the Assignee.
The Assignee must execute a service agreement with the Transmission Provider governing
reassignments of transmission service prior to the date on which the reassigned service
commences. The Transmission Provider shall charge the Reseller, as appropriate, at the rate
stated in the Reseller’s Service Agreement with the Transmission Provider or the associated
OASIS schedule and credit the Reseller with the price reflected in the Assignee’s Service
Agreement with the Transmission Provider or the associated OASIS schedule; provided that,
such credit shall be reversed in the event of non-payment by the Assignee. If the Assignee does
not request any change in the Point(s) of Receipt or the Point(s) of Delivery, or a change in any
other term or condition set forth in the original Service Agreement, the Assignee will receive the
same services as did the Reseller and the priority of service for the Assignee will be the same as
that of the Reseller. The Assignee will be subject to all terms and conditions of this Tariff. If the
Assignee requests a change in service, the reservation priority of service will be determined by
the Transmission Provider pursuant to Section 13.2.
Page 1
PJM Tariff, Section 23.1
(Effective 1/11/11 - Version 1.1.0)
23.1
Procedures for Assignment or Transfer of Service:
A Transmission Customer may sell, assign, or transfer all or a portion of its rights under its
Service Agreement, but only to another Eligible Customer (the Assignee). The Transmission
Customer that sells, assigns or transfers its rights under its Service Agreement is hereafter
referred to as the Reseller. Compensation to Resellers shall be at rates established by agreement
between the Reseller and the Assignee.
The Assignee must execute a service agreement with the Transmission Provider and
PJMSettlement governing reassignments of transmission service prior to the date on which the
reassigned service commences. PJMSettlement shall charge the Reseller, as appropriate, at the
rate stated in the Reseller’s Service Agreement with the Transmission Provider and
PJMSettlement or the associated OASIS schedule and credit the Reseller with the price reflected
in the Assignee’s Service Agreement with the Transmission Provider and PJMSettlementor the
associated OASIS schedule; provided that, such credit shall be reversed in the event of nonpayment by the Assignee. If the Assignee does not request any change in the Point(s) of Receipt
or the Point(s) of Delivery, or a change in any other term or condition set forth in the original
Service Agreement, the Assignee will receive the same services as did the Reseller and the
priority of service for the Assignee will be the same as that of the Reseller. The Assignee will be
subject to all terms and conditions of this Tariff. If the Assignee requests a change in service, the
reservation priority of service will be determined by the Transmission Provider pursuant to
Section 13.2.
Page 1
PJM Tariff, Section 23.1
(Effective 7/14/11 - Version 2.1.0)
23.1
Procedures for Assignment or Transfer of Service:
A Transmission Customer may sell, assign, or transfer all or a portion of its rights under its
Service Agreement, but only to another Eligible Customer (the Assignee). The Transmission
Customer that sells, assigns or transfers its rights under its Service Agreement is hereafter
referred to as the Reseller. Compensation to Resellers shall be at rates established by agreement
between the Reseller and the Assignee.
The Assignee must execute a service agreement with the Transmission Provider and
PJMSettlement governing reassignments of transmission service prior to the date on which the
reassigned service commences. PJMSettlement shall charge the Reseller, as appropriate, at the
rate stated in the Reseller’s Service Agreement with the Transmission Provider and
PJMSettlement or the associated OASIS schedule and credit the Reseller with the price reflected
in the Assignee’s Service Agreement with the Transmission Provider and PJMSettlement or the
associated OASIS schedule; provided that, such credit shall be reversed in the event of nonpayment by the Assignee. If the Assignee does not request any change in the Point(s) of Receipt
or the Point(s) of Delivery, or a change in any other term or condition set forth in the original
Service Agreement, the Assignee will receive the same services as did the Reseller and the
priority of service for the Assignee will be the same as that of the Reseller. The Assignee will be
subject to all terms and conditions of this Tariff. If the Assignee requests a change in service, the
reservation priority of service will be determined by the Transmission Provider pursuant to
Section 13.2.
Page 1