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New Jersey BPU Investigating PJM Bias

9/29/2011

6 Comments

 
We've been following New Jersey's fight with the PJM cartel and FERC, who manipulate markets in order to keep electricity prices high in the state for the benefit of PJM's 200-pound gorilla incumbent power  conglomerates.

Yesterday, the NJ BPU issued an order setting a new hearing on the matter.  Questions the BPU will be exploring at the hearing include:
  1. Are incumbent generators submitting projects for the purpose of taking up positions in the PJM interconnection queue to the detriment of new entrants?
  2. Is it inappropriate to have PJM transmission-owning entities (“TOs”) perform interconnection studies given that some of the TOs are part of holding companies that own generation through other affiliates or subsidiaries that participate in the PJM markets? Are such TOs causing intentional delays in the interconnection process to benefit incumbent generation affiliates?
  3. Are there any inconsistencies between the transmission assumptions made in the PJM Regional Transmission Expansion Planning (“RTEP”) process and the transmission assumptions made in calculating the Capacity Emergency Transfer Limits (“CETL”) for the Locational Deliverability Areas (“LDAs”) modeled in RPM (e.g., double-circuit tower line criteria violations)?
  4. Since implementation of the RPM in 2007, why has the market responded with disproportionately greater amounts of new generation capacity built outside of LDAs with higher capacity prices such as those that comprise New Jersey?
  5. Does structural market power play a role in obstructing the development of new capacity in the constrained LDAs that serve New Jersey electric consumers? What are the precise means by which incumbent generators with structural market power obstruct or could potentially obstruct the development of new capacity projects in these markets?
  6. What actions can the Board take to dilute existing structural market power and thwart any abuse of incumbents who exercise it to impede capacity development?
Read more about the situation here.

Ut-oh, PJM!  Looks like your continued bias has made you and your power company masters a dangerous enemy!

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6 Comments
PowerMAD
9/28/2011 09:08:43 pm

Oh, this is too easy!

1. Yes
2. Yes
3. Yes
4. Because entrenched interests don't want anything to stop the money train.
5. Yes
6. Derail the money train!

Reply
Keryn
9/28/2011 09:25:36 pm

Road trip to NJ? ;-)

Reply
bh link
9/29/2011 12:11:28 am

Did anyone mention the word "cartel"?

Reply
Keryn
9/29/2011 12:21:04 am

You mean?

cartel |kärˈtel|
noun
an association of manufacturers or suppliers with the purpose of maintaining prices at a high level and restricting competition : the Colombian drug cartels.
• chiefly historical a coalition or cooperative arrangement between political parties intended to promote a mutual interest.
ORIGIN late 19th cent.: from German Kartell, from French cartel, from Italian cartello, diminutive of carta, from Latin carta (see card 1 ). It was originally used to refer to the coalition of the Conservatives and National Liberal parties in Germany (1887), and hence any political combination; later to denote a trade agreement (early 20th cent.).

I think that's the general idea...

Reply
PowerMAD
9/29/2011 03:11:17 am

A road trip? You know me - I'm always up for road trips! Maybe we could testify ...

Reply
Keryn
9/29/2011 04:01:57 am

But what fun would that be if there wasn't a PR dork in the audience rolling his eyes and making faces?

Road trips are fun... that would make 3rd weekend in a row!

Reply



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    About the Author

    Keryn Newman blogs here at StopPATH WV about energy issues, transmission policy, misguided regulation, our greedy energy companies and their corporate spin.
    In 2008, AEP & Allegheny Energy's PATH joint venture used their transmission line routing etch-a-sketch to draw a 765kV line across the street from her house. Oooops! And the rest is history.

    About
    StopPATH Blog

    StopPATH Blog began as a forum for information and opinion about the PATH transmission project.  The PATH project was abandoned in 2012, however, this blog was not.

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