OATT Clean-Up
Transmission Service Resale Price Caps
Members Committee Webinar
June 27, 2016
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Background
• In Order No. 890, FERC concluded “that it is appropriate
to lift the price cap for all transmission customers
reassigning transmission capacity.” (¶ 808)
• In Order No. 890-A, FERC reaffirmed this decision. (¶
388) However, because FERC Staff was conducting a
two-year study, FERC 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.” (¶ 390)
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Background
• In Order No. 739, FERC permanently removed the price
caps based on FERC Staff’s report from the two-year
study. (¶ 25)
• FERC directed transmission providers to file revisions to
their OATT’s indicating: “Because 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.” (¶ 37)
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Order No. 739, Appendix B
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Proposed Tariff Revisions
• PJM has not applied price caps to the resale rate
upstream in OASIS, consistent with the referenced
orders.
• A clean-up filing is needed to remove the language in
Tariff, section 23.1 to avoid any confusion or potential
future inconsistencies with Order No. 739.
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Proposed Tariff Revisions
• PJM will file revisions with FERC by June 30, 2016.
• This presentation is for informational purposes so
stakeholders are not surprised.
• No detailed stakeholder discussion or vote is required for
these revisions because:
– PJM incorporated the pro forma OATT section 23.1 language
into the PJM Tariff.
– Order No. 739 was very clear as to its directive.
– FERC, in Order No. 739, specified exactly what language should
be deleted from section 23.1.
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