As a result of their good-faith negotiations and the commendable efforts of the Commission-provided facilitator and mediation specialists, the parties reached consensus regarding revisions to the Market Monitoring Plan in the PJM Open Access Transmission Tariff (“PJM Tariff”). The parties also reached consensus regarding revisions to terms in the Operating Agreement … on the disclosure of confidential information to state regulators and other authorized persons, and a new Schedule … for recovery of the MMU’s costs from PJM customers. PJM and Dr. Bowring also reached agreement on a Market Monitoring Services Agreement and a supporting data-access agreement … regarding the market monitoring services to be performed by a company to be formed by Dr. Bowring to provide market monitoring services.
The above text is from the December 19 settlement agreement filed by PJM at FERC resolving issues raised in a pair of complaints concerning PJM administration interference with performance of the market monitoring unit.
Additional details on the PJM market monitoring agreement were reported in a Baltimore Sun story on December 20:
A settlement filed yesterday with federal energy regulators calls for the hiring of an outside firm under a six-year contract starting in June, PJM said in a statement.
Current market monitor Joseph E. Bowring, who said earlier this year that PJM’s management was interfering with his market reports, will head the external firm….
The agreement states that Bowring’s firm, Monitoring Analytics LLC, will have direct access to PJM’s data and can provide state regulators with market information. The firm could only be fired with the approval of federal regulators, who also would rule on any budget disputes.
Based on the summary in the newspaper story, the framework appears similar to that employed by the Midwest ISO when it secured a contract with its external market monitor. As proposed in the filing, the new market monitoring plan with go into effect on June 1, 2008.
Perhaps with this news, the series of posts here concerning PJM and its market monitor will come to an end. Here is the list:
PJM, its Market Monitoring Unit, and the hotline tipster’s allegation of market power
Newspaper Article Presents Dispute between PJM and its Market Monitor
PJM Wants to Reorganize Market Monitoring Unit, Move On
PJM’s Newly Ex-CEO: PJM Never Really Wanted a Market Monitor
U.S. Senator Weighs in on PJM Dispute with Market Monitor
PJM Market Monitor Reports Interference from Management
The Kluge That We Need: Local Market Power Mitigation Measures
Ex Post Market Monitoring in Electric Power Markets
Why do we have Electric Power Market Monitors?
Market Monitors in Electric Power Markets, II
The Role of Market Monitors in Electric Power Networks