News Stories
Sponsored by Earth Etch. Regulatory insight and compliance solutions for today’s energy markets.
State Of The Wholesale Electricity Markets From Joint Utilities’ Perspective
Jointly, Ohio Edison, Cleveland Illuminating, and Toledo Edison filed a notice of quarterly update to PUCO on the state of the wholesale electricity markets from the utilities’ perspective.
This report is updated on a quarterly basis (December 1, March 1, June 1, and September 1). The purpose of this report is to provide an overview of key FERC and PJM initiatives active in each quarter.
As previously reported, on January 30, 2024, FERC issued an order accepting PJM’s proposed reforms to its capacity accreditation model, risk modeling enhancements, and resource testing. On February 6, 2024, however, FERC issued an order rejecting PJM’s proposed capacity market reforms relating to the market seller offer cap, bonus payments, and other capacity performance related topics. On February 24, 2023, FERC filed a letter to stakeholders, which kicked off an expedited stakeholder process to pursue near-term changes to the reliability pricing model.
As background, the application of FirstEnergy utilities to establish a standard service offer in the form of an electric security plan (ESP). The utilities are proposing to freeze distribution base rates during the 3-year ESP period; continuing competitive procurement using a “laddered approach” through 5/31/19; eliminating experimental time-of-use rates to leave such services to the competitive market; and implementing a web- based supplier portal including supplier logo shopping customer’s utility-issued consolidated bill.
The ESP also includes a long-term power purchase agreement proposal between the FirstEnergy utilities and its competitive affiliate, called the “Retail Stability Rider.” PUCO described the rider as “…a form of rate insurance. If energy market prices stay at the current low levels, customers will pay a charge under rider RRS; however, if energy market prices rise from the current low levels, customers will begin to receive a credit under rider RRS, which will mitigate the increases customers see on their bills. The higher energy market prices rise, the greater the amount of credit customers will see.”
Quarterly Wholesale Report (03/01/2024)
14-1297-EL-SSO (08/04/2014)
