Att A- Corrected Transmittal (Clean).pdf
Topics in the text: Cost allocation · Credit and exit · Reliability and curtailment
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Source sections
Printed headings where available; page ranges otherwise. Excerpts below are selected from the text by keyword.
Attachment A
printed heading · Topic match: Cost allocation
Debbie-Anne Reese, Secretary October 29, 2026 Page 2 to LSEs exiting PJM of their continuing responsibility for RBP Charges allocated to them through the remainder of the RBP commitment term.4 PJM requests that most of the proposed revisions become effective on February 28, 2027—the same effective…Read this passage
I. BACKGROUND
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I.Read this passage
BACKGROUND
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Consistent with the Commission’s direction, this filing presents targeted modifications to the RBP’s cost allocation, exit responsibilities, and collateral provisions that are intended to resolve the Commission’s remaining areas of concern, strengthen the overall design of the RBP, and facilitate…Read this passage
II. PROPOSED UPDATES THAT ADDRESS ISSUES IDENTIFIED IN THE
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PROPOSED UPDATES THAT ADDRESS ISSUES IDENTIFIED IN THE COMMISSION’S SEPTEMBER 29 ORDERRead this passage
A. PJM Proposes Updates that Directly Address the Commission’s RBP Cost
printed heading · Topic match: Cost allocation
Under FPA section 205, cost allocation must be grounded in the principle that costs are assigned to those who cause them or benefit from the facilities and services provided.12 At the same time, courts have long recognized that cost causation is not a standard of mathematical precision.Read this passage
B. Credit Requirements of LSEs Commensurate with Risks (Proposed Tariff,
printed heading · Topic match: Credit and exit
PJM proposes five broad changes to the RBP LSE credit rules: (1) establish, using objective data, a revised uniform credit rate, based on quantitative analyses, for LSEs allocated responsibility for RBP Charges to post collateral;48 (2) lengthen the timeframe from when an LSE is assigned…Read this passage
C. Treatment of RBP Commitment in Event of Transmission Owner Exit
printed heading · Topic match: Cost allocation
The September 29 Order suggests that “a just and reasonable approach could require LSEs in an exiting Transmission Owner’s zone to pay RBP exit fees commensurate with their cost allocation under the RBP, to prevent cost shifts to other LSEs in the PJM Region.”94 Accordingly, PJM proposes to require…Read this passage
III. PROPOSED ADDITIONAL UPDATES TO THE ACCEPTED RBP RULES
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PROPOSED ADDITIONAL UPDATES TO THE ACCEPTED RBP RULES Beyond the proposed updates discussed above, PJM proposes additional limited amendments to the Tariff that serves to further refine, clarify, and/or update the set of RBP rules as detailed below.Read this passage
A. PJM Proposes to Amend the Opt-Out for LSEs that Are Not Regulated by
printed heading · Topic match: Cost allocation
However, in the September 29 Order, the Commission found that the proposed opt-out for qualifying cooperatives and municipal utilities may be unjust, unreasonable, and unduly discriminatory because those entities may serve Large Loads that are similarly situated to Large Loads served by other LSEs…Read this passage
B. PJM Proposes Updates to Modify the Opt-Out for a Peak Shaving
printed heading · Topic match: Reliability and curtailment
While PJM is maintaining the remaining opt-out for Electric Distributors that address resource adequacy needs through Peak Shaving Adjustment programs established pursuant to state law, PJM proposes a targeted modification to better align that opt-out with the requirements applicable to Qualifying…Read this passage
C. PJM Proposes to Update the Rules Related to the Cure Period for Any
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PJM Proposes to Update the Rules Related to the Cure Period for Any Identified Deficiencies Associated with an RBP Sell Offer.Read this passage
D. PJM Proposes Clarifications Related to Qualifying RBP Offset UCAP
printed heading · Topic match: Reliability and curtailment
PJM Proposes Clarifications Related to Qualifying RBP Offset UCAP MW.Read this passage
E. PJM Proposes to Update Site Control Requirements.
printed heading · Topic match: Connecting load and generation
PJM Proposes to Update Site Control Requirements.Read this passage
F. PJM Proposes to Utilize the Most Updated Resource Forecast and
printed heading · Topic match: Reliability and curtailment
PJM Proposes to Utilize the Most Updated Resource Forecast and Resource Mix.Read this passage
G. PJM Proposes to Update Must-Offer and Binding Notice of Intent Rules
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PJM Proposes to Update Must-Offer and Binding Notice of Intent Rules for Committed RBP Resources.Read this passage
IV. REQUEST
printed heading · Topic match: Reliability and curtailment
Additionally, this FPA section 205 filing proposes to commence the RBP on March 1, 2027, which is designed as a stop-gap measure to address the expected resource adequacy shortfall that would be duplicative of a Reliability Backstop Auction.Read this passage
V. STAKEHOLDER CONSULTATION
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STAKEHOLDER CONSULTATION As required by Tariff, section 9.2(b), PJM consulted the Members Committee and the Transmission Owners on October 22, 2026, seven days prior to submitting this filing.153 In addition, PJM also consulted with the Transmission Owners on October 22, 2026, in 152 Powering…Read this passage
VI. PROPOSED EFFECTIVE DATES AND UPDATED RBP TIMING
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Finally, PJM respectfully requests that the Commission issue an order on all aspects of this filing no later than January 29, 2027.Read this passage
VII. MOTION FOR EXTENDED, 32-DAY COMMENT PERIOD
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MOTION FOR EXTENDED, 32-DAY COMMENT PERIOD To provide interested parties with a meaningful opportunity to review and comment on the proposed revisions to the RBP rules, PJM respectfully requests that the Commission establish a 32-day comment period for this filing, i.e., November 30, 2026.Read this passage
VIII. DESCRIPTION OF SUBMITTAL
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DESCRIPTION OF SUBMITTAL This filing consists of the following: 1.Read this passage
IX. CORRESPONDENCE
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CORRESPONDENCE The following individuals are designated for inclusion on the official service list in this proceeding and for receipt of any communications regarding this filing: Craig Glazer Vice President – Federal Government Policy PJM Interconnection, L.L.C. 1200 G Street, N.W., Suite 600…Read this passage
X. SERVICE
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SERVICE PJM has served a copy of this filing on all PJM Members and on all state utility regulatory commissions in the PJM Region by posting this filing electronically.Read this passage
XI. CONCLUSION
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XI.Read this passage
CONCLUSION
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CONCLUSION Based on the foregoing, PJM respectfully requests that the Commission accept the proposed Tariff revisions as discussed herein and effective as proposed.Read this passage