PJM Supporting Companies Make ISO Filing
After six months of negotiations with interested stakeholders, the PJM (Pennsylvania, New Jersey, Maryland pool) Supporting Companies recently filed a revised proposal to establish an independent system operator (ISO) for the mid-Atlantic energy market.
According to Andrew Williams, the group`s vice president and an employee of Potomac Electric Power Co., the filing represents the convergence of a number of factors. Among them are the need to establish a truly competitive, economically efficient and open energy market in the Mid-Atlantic region; a commitment to maintain economy and reliability for the customers; an assurance that reliability benefits will be preserved in the future while accommodating retail choice; and ability of all stakeholders to participate in the design of the PJM ISO.
On Dec. 31, 1996, PJM member companies made the initial filing in compliance with Order 888 for “tight power pools,” which included a poolwide pro-forma transmission tariff and modifications to the Interconnection Agreement to open membership in the PJM pool. The revised proposal, designed to retain the reliability that customers have come to expect, is also meant to allow all participants an opportunity to realize the benefits of regional economic dispatch, said Williams. The proposed ISO will operate an hourly spot market, in which buyers and sellers have the option to participate. The voluntary spot market to be administered by the ISO is designed to provide an efficient market mechanism with transparent market clearing prices.
The PJM Supporting Companies are Public Service Electric and Gas Co., Pennsylvania Power & Light Co., Baltimore Gas and Electric Co., Jersey Central Power & Light Co., Metropolitan Edison Co., Pennsylvania Electric Co. (the three pending companies conducting business as GPU Energy are subsidiaries of GPU Inc.), Potomac Electric Power Co., Atlantic City Electric Co. and Delmarva Power & Light Co.