Protest of the Pennsylvania Office of Consumer Advocate to PJM Interconnection, L.L.C.’s Reliability Backstop Procurement proposal
Read topic-matched comments in ER26-3380
Topics in the text: Cost allocation · Registry access · Retail and wholesale authority
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Opening text
opening text · Topic match: Registry access
ER26-3380-000 PROTEST OF THE PENNSYLVANIA OFFICE OF CONSUMER ADVOCATE RE: RELIABILITY BACKSTOP PROCUREMENT TO ADDRESS RESOURCE ADEQUACY CONCERNS STEMMING FROM NEW LOAD ADJUSTMENTS August 21, 2026 iRead this passage Filed comments: Registry access
Table of Contents
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Table of Contents I.Read this passage Filed comments: Cost allocation
IV. FERC’s Exclusive Jurisdiction to Determine PLC and NSPL Value
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IV.Read this passage Filed comments: Cost allocation
A. PJM’s proposal to have states determine the RBO methods for addressing cost
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PJM’s proposal to have states determine the RBO methods for addressing cost allocation of RBP costs is unjust and unreasonable because it presents a jurisdictional problem that FERC must address. ............................................................................................ 14Read this passage
B. There is time to get cost allocation right – by the time cost allocation comes due for
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B.Read this passage Filed comments: Cost allocation
D. FERC should adopt Option 1 by affirming its exclusive jurisdiction over RBO
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D.Read this passage
I. Introduction
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I.Read this passage
Introduction
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The PA OCA represents the interests of Pennsylvania utility consumers or ratepayers before FERC.2 “Ratepayers” refers to the millions of retail end users that are served by the PJM grid.Read this passage Filed comments: Cost allocation
II. Executive Summary
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II.Read this passage
Executive Summary
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Despite FERC’s longstanding exercise of authority over PLC and NSPL value determinations, PJM proposes in its RBP filing to address cost allocation of RBP obligations through “state and/or [state utility commission]- determined allocation of RBP UCAP MW to LSEs within each zone/area.” PJM defines…Read this passage Filed comments: Cost allocation
III. Summary of Cost Allocation Portion of PJM’s Tariff Filing
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Summary of Cost Allocation Portion of PJM’s Tariff Filing In its filing, PJM proposes that the states or state utility commissions (PJM refers to state utility commissions as the “Relevant Electric Retail Regulatory Authority” or “RERRA”)3 determine allocation of cleared RBP unforced capacity…Read this passage Filed comments: Cost allocation
IV. FERC’s Exclusive Jurisdiction to Determine PLC and NSPL Value Methodologies
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Each EDC in PJM must then allocate a share of its PJM-assigned peak load to each customer on its system and aggregate these peak loads to the LSE level.Read this passage
A. NSPL Determinations for Transmission Costs Allocations to LSEs
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Corp.,11 FERC found that it has jurisdiction over determining NSPL methods and, ultimately, the NSPL values assigned to individual retail customers for purposes of PJM allocating transmission costs to LSEs, as follows: As an initial matter, we find that the Commission has jurisdiction over the…Read this passage Filed comments: Cost allocation
B. PLC Determinations for Capacity Cost Allocations to LSEs
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Each EDC in PJM must then allocate a share of its PJM-assigned peak load to each customer on its system and aggregate these 21 See 2020 Amtrak, 171 FERC ¶ 61,237, at P 34 (2020) (noting that “many transmission owners have filed their methodologies for determining both capacity and [NSPL]…Read this passage Filed comments: Cost allocation
V. Argument
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V.Read this passage
A. PJM’s proposal to have states determine the RBO methods for addressing cost
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PJM’s proposal to have states determine the RBO methods for addressing cost allocation of RBP costs is unjust and unreasonable because it presents a jurisdictional problem that FERC must address.Read this passage Filed comments: Cost allocation
B. There is time to get cost allocation right – by the time cost allocation comes
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There is time to get cost allocation right – by the time cost allocation comes due for the first Delivery Year in which RBP Resources are expected to be in service (i.e., 2028/2029).Read this passage Filed comments: Cost allocation
C. Potential Relief Options
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Importantly, if FERC decides that the RBO value methodology used by PJM for RBP cost allocation is distinguishable from the PLC/NSPL value methodologies used for capacity/transmission cost allocation, FERC must expressly declare that states have jurisdiction over the RBO methods.Read this passage Filed comments: Cost allocation
D. FERC should adopt Option 1 by affirming its exclusive jurisdiction over RBO
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Comm’n 2020), https://www.puc.pa.gov/pcdocs/1687575.docx. 45 PJM Interconnection, L.L.C., 141 FERC ¶ 61,009, at P 1 (2012); PJM Interconnection, L.L.C., 144 FERC ¶ 63,011, at P 24 (2013) (“[t]he primary issue underlying the Partial Settlement [was] whether Attachments M-1 and M-2 are just and…Read this passage
VI. Conclusion
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VI.Read this passage
Conclusion
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As compared to Figure 1 and Figure 2 – where assignment of MWs is subject to federal jurisdiction per Amtrak v PPL – PJM now proposes to have states establish this method.Read this passage Filed comments: Cost allocation
CERTIFICATE OF SERVICE
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Harrisburg, Pennsylvania; August 21, 2026. /s/ Josiah Harmar Josiah Harmar Assistant Consumer Advocate PA Attorney ID # 338426 JHarmar@paoca.orgRead this passage Filed comments: Registry access