FERC Commentary on ISO Credit Processes, What Changes are Potentially Coming

The presentation will explore the current credit process activity at PJM and FERC from a current events perspective. This will include the impacts of Winter Storm Elliott on the capacity performance construct and the current threats of generator insolvency from the $1 to 2 billion dollar capacity penalty payments owed to PJM. The presentation will integrate recent FERC rulings on PJM market participant bankruptcy positioning in its tariff, FTR credit requirements, and capacity penalty repayment schedules. Further consideration will be given to the potential direct effect credit outcomes will have on the reliability of the PJM grid. Combined with this will be an evaluation of how the current interest rate hikes and bank failures could create dozens of outcome permutations involving individual distressed generation asset decision making. We will also investigate how FERC’s internal processes accept ISO submitted credit and market design filings and support the building of a record based on intervenor comments and reply comments then considers them and creates staff positions or draft orders for the FERC commissioner reviews.