[Federal Register Volume 74, Number 100 (Wednesday, May 27, 2009)]
[Notices]
[Pages 25234-25235]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-12214]


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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Docket Nos. ER05-1410-000; EL05-148-000; ER09-412-000]


PJM Interconnection L.L.C.; Notice of Filings

May 19, 2009.
    On March 26, 2009, the Commission issued an order accepting new 
tariff provisions relating to PJM Interconnection, L.L.C. (PJM's) 
Reliability Pricing Model (RPM) capacity market, including changes to 
the procedures governing Incremental Auctions that became effective 
March 27, 2009.\1\ One such revision was to the table of default 
Avoidable Cost Rate (ACR) values for the Base Residual Auction and 
three subsequent Incremental Auctions that PJM administers for each 
Delivery Year. Capacity suppliers who fail the market power test may 
use these ACR values as default bids when they offer capacity into the 
Incremental Auctions.
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    \1\ PJM Interconnection, L.L.C., 126 FERC ] 61,275 (2009).
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    On April 29, 2009, the PJM Market Monitor filed a letter to the 
Commission stating that, due to an oversight on its part, it believes 
the ACR values contained in those provisions are higher than 
appropriate for the upcoming Incremental Auctions in June 2009 and 
January 2010. The Market Monitor is concerned that use of these ACR 
values may lead to non-competitive market outcomes in the first 
Incremental Auction (June 1-5, 2009) for Delivery

[[Page 25235]]

Year 2011/2012 and the third Incremental Auction (January 4-8, 2010) 
for Delivery Year 2010/2011 and asks the Commission to take action as 
necessary to correct this condition, if it agrees with the Market 
Monitor's views regarding non-competitive market outcomes.
    PJM filed a responsive letter on April 29, 2009, containing 
correspondence between PJM and the Market Monitor. In this 
correspondence, PJM stated that, in its view, an expedited tariff 
change is not necessary, and that it believes that the prices produced 
by use of the ACR values accepted in the March 26 Order will lead to 
rates that are within the range of reasonable variation. PJM also 
stated that the RPM market design does not anticipate the default ACR 
values changing for each Delivery Year, and recommends that rather than 
seeking a tariff change on an emergency basis, PJM's stakeholders 
should consider this issue and, if they so choose, present this issue 
to the Commission in an orderly fashion. Therefore, while indicating 
that ACR changes are not feasible or advisable for the June 2009 
Incremental Auction, PJM commits to add the topic of default ACR values 
to the agenda for the Capacity Markets Evolution Committee as an item 
to be discussed and resolved by stakeholders by September 1, 2009.
    The Commission encourages electronic submission in lieu of paper 
using the ``eFiling'' link at http://www.ferc.gov. Persons unable to 
file electronically should submit an original and 14 copies of comments 
to the Federal Energy Regulatory Commission, 888 First Street, NE., 
Washington, DC 20426.
    This filing is accessible on-line at http://www.ferc.gov, using the 
``eLibrary'' link and is available for review in the Commission's 
Public Reference Room in Washington, DC. There is an ``eSubscription'' 
link on the Web site that enables subscribers to receive e-mail 
notification when a document is added to a subscribed docket(s). For 
assistance with any FERC Online service, please e-mail 
[email protected], or call (866) 208-3676 (toll free). For 
TTY, call (202) 502-8659.
    Comment date: June 3, 2009.

Kimberly D. Bose,
Secretary.
[FR Doc. E9-12214 Filed 5-26-09; 8:45 am]
BILLING CODE 6717-01-P