On September 29, the PJM Interconnection and 80 other settling parties filed a settlement package to comprehensively resolve 15 separate Federal Energy Regulatory Commission complaints regarding extraordinary non-performance charges resulting from Winter Storm Elliott on Dec. 23 and Dec. 24, 2022.

PJM reported forced outages of natural gas-fired electric generation accounted for 70% of the total outages, coal 16% and the remainder were oil, nuclear, hydro, wind and solar.

The settling parties requested that FERC approve the settlement no later than Dec. 29, 2023.

The proposed settlement is a result of expedited talks requested by PJM and approved by FERC.

PJM said it is a product of collaboration among PJM and a significant number of diverse market participants – including complainants, intervenors who are net non-performance-charge payors, intervenors who have zero assessed non-performance charges, and intervenors who are net-performance payment recipients – that either support the settlement or do not oppose it.

All participants in the proceedings and all other persons required to be given notice under FERC regulations must submit comments to FERC by October 19.  Reply comments are due October 30.

PJM is requesting The Commission to take final action on the settlement no later than December 29.

PJM said, despite Winter Storm Elliott’s extreme cold temperatures, which presented unprecedented operational challenges, PJM maintained reliability throughout the PJM region, kept the lights on for the 65 million people in its region, and helped mitigate load shed in surrounding areas with assistance to neighboring grids.

Under the terms of the proposed settlement, swift resolution of the complaints relating to Winter Storm Elliott supports continuing reliable operations, confidence in PJM energy markets and overall generation fleet resilience, the settling parties told FERC.

Proposed settlement terms include:

-- Market-wide reduction in non-performance charge assessments, which reduces performance payments

-- Review of PJM credit requirements and return of collateral consistent with the PJM Tariff

-- Resolution of all allegations regarding PJM operations lodged before FERC in the Winter Storm Elliott complaints, with the exception of two matters that are not central to PJM operations during the event

-- No admission by PJM to any violation of the PJM Tariff or any other wrongdoing

Based upon FERC action on a waiver and the filing of the broadly-supported settlement, PJM will pause billing of the remaining, unbilled non-performance charges and concurrent disbursement of payments to suppliers that over-performed during storm events. These changes are expected to take effect in the October billing cycle.

The proposed settlement does not resolve capacity market design issues recognized during Winter Storm Elliott.

PJM and its stakeholders have been discussing additional changes to capacity market rules as communicated in a letter from the PJM Board of Managers dated Sept. 27, 2023.

Click Here for the complete announcement.  Click Here for a copy of the settlement.

The PJM Interconnection PJM is a regional transmission organization that coordinates the movement of wholesale electricity in all or parts of 13 states and the District of Columbia, including Pennsylvania.

Related Articles - PJM:

-- PJM Interconnection Board Proposes Market Reforms Based Largely On Unreliability Of Natural Gas-Fired Power Plants During Winter Storm Elliot  [PaEN]

-- Utility Dive: PJM Board Calls For Capacity Market Changes To Bolster Grid Reliability, Resource Adequacy

PA Oil & Gas Industry Public Notice Dashboards:

-- Pennsylvania Oil & Gas Weekly Compliance Dashboard - Sept. 23 to 29; More Abandoned Wells; Oil & Gas Doesn’t Typically Issue NOVs For ‘Routine’ Venting Of Natural Gas, Will Air Quality Under New Regs?  [PaEN]

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-- DEP Invites Comments On Title V Air Quality Permit For Eastern Gas Transmission Compressor Station In Westmoreland County At Oct. 31 Hearing  [PaEN]

-- DEP Posted 54 Pages Of Permit-Related Notices In September 30 PA Bulletin  [PaEN]

NewsClips This Week:

-- PennLive Guest Essay: Gov. Shapiro, The Fracking Clock Is Ticking - By Megan McDonough, Food & Water Watch

-- AP: Gov. Shapiro Noncommittal On Greenhouse Gas Strategy As Climate Task Force Finishes Work

-- The Allegheny Front: EPA’s Approval Of 2nd Plum Boro Oil/Gas Wastewater Injection Well In  Allegheny County Raises Fears That More Are On The Way

-- Grist - Will Peischel: Inside The Rough-And-Tumble Race To Clean Up America’s Abandoned Oil & Gas Wells [PA Highlighted]

-- Post-Gazette - Anya Litvak: Same Geology, Same Drilling, Different Resource: Geothermal Energy Interest Simmers In PA

-- Planet Philadelphia Radio: Cleaning Up Our Energy Systems, Oct. 5 At 4:00 p.m.

-- Observer-Reporter: Pipeline Operator Faces $100,000 PUC Penalty For 2020 House Explosion In Greene County

-- WTAE: Natural Gas Pipeline Leak In Collier Twp., Allegheny County Forces People Out Of Their Homes

-- PUC Commissioner Kathryn Zerfuss Appointed To Presidential Task Force On Evolving Natural Gas Infrastructure Planning

-- Utility Dive: PJM Board Calls For Capacity Market Changes To Bolster Grid Reliability, Resource Adequacy

-- Guest Essay: EPA Further Threatens Grid Reliability By Reducing Carbon Pollution From Power Plants, Including Natural Gas-Fired Power Plants - By Sen. Gene Yaw (R-Lycoming), Majority Chair of the PA Senate Environmental Committee

-- Reuters: US Winter Heating Costs To Rise For Most, Natural Gas Customers To See Drop Of -- 1% From Last Year 

-- Pittsburgh Business Times: Marcellus Shale Gas Industry Coalition Highlights Natural Gas Industry’s Economic Impact In PA; Faces Bills Extending Safety Zones

-- Marcellus Shale Gas Industry Coalition: Natural Gas Generates $41 Billion In Economic Activity, Supports 123,000 Jobs, Produced $6.3 Billion In Landowner Royalties

-- Erie Times Guest Essay: Marcellus Shale Gas Coalition Wraps Up Conference In Erie - Natural Gas Delivers For All Pennsylvanians

-- JDSupra: Federal Court In Ohio Makes Important Ruling On Post-Production Costs For Oil & Gas Leaseholders Under ‘Market Enhancement’ Clause

Related Articles This Week:

-- Environmental Health Project: How DEP Issues Permits For Shale Gas Facilities Without Considering Cumulative Impacts - How New Facilities Will Add To Existing Pollution Loads And Impact The Area  [PaEN]

-- Member Of Pine Creek Headwaters Protection Group Briefs DCNR Advisory Council On Siting Of Shale Gas Well Pad On State Forest Land To Accommodate Taking Gas From Private Land In Tioga County  [PaEN]

-- Gov. Shapiro’s Work Group Concludes A Cap-And-Invest Carbon Pollution Regulation Program Would Be Optimal Approach To Reducing Greenhouse Emissions From Power Plants; Scale Up Solar Energy  [PaEN]

-- On Sept. 27 Families Will Hold Town Hall Meeting In Washington County Seeking Policy Changes After Pitt Studies Link Natural Gas Development And Negative Health Outcomes  [PaEN]

-- Guest Essay: DEP Should Invest $33.6 Million In New Federal Funding Wisely To Plug  Conventional Oil & Gas Wells And Not Reward The Industry For Bad Behavior  - By  Russell Zerbo, Clean Air Council  [PaEN]

-- DEP Updates Times Of 2 Hearings On Interim Final Environmental Justice Policy To Accept Comments In Erie, Philadelphia  [PaEN]

-- PJM Interconnection Board Proposes Market Reforms Based Largely On Unreliability Of Natural Gas-Fired Power Plants During Winter Storm Elliot  [PaEN]

-- PJM Interconnection Files Proposed Winter Storm Elliot Settlement With Non-Performing Electric Generators With FERC, Requests Final Action By Dec. 29  [PaEN]  

[Posted: September 30, 2023]

10/2/2023