On April 18, 2016, FERC largely accepted PJM Interconnection L.L.C. ("PJM") and the Midcontinent Independent System Operator, Inc.'s ("MISO") proposal to implement "Coordinated Transaction Scheduling" ("CTS") between the two Regional Transmission Organizations ("RTOs"). According to the proposal, CTS would allow market participants in both PJM and MISO to schedule coordinated buy-sell transactions across the MISO-PJM interface.
In their December 15, 2015 filing, PJM and MISO proposed revisions to the PJM-MISO Joint Operating Agreement ("JOA"), the PJM Operating Agreement, and the PJM and MISO Open Access Transmission Tariffs ("Tariffs") to implement CTS. As proposed, the revisions would permit market participants to submit "CTS Interface Bids" consisting of offers to schedule coordinated buy-sell transactions across the MISO-PJM interface when projected price differences between the MISO and PJM Balancing Authority Areas are greater than the amounts specified in the bid. PJM and MISO argued in their filing that CTS would improve scheduling efficiency, and thereby increase price convergence at the market boundaries.
In response, FERC largely accepted PJM and MISO's proposal. Noting that it had previously accepted CTS for other RTOs, FERC stated that it "continues to find that CTS is a just and reasonable mechanism for enhancing market efficiency of inter-RTO transactions and minimizing flows from a high-priced control area to a low-priced control area." FERC also agreed with PJM and MISO that the proposal "should increase utilization of available transfer capability between the RTOs by decreasing market participant risk and enable the RTOs to more easily obtain power at the lowest available cost."
However, in addressing concerns raised by protesters, FERC found that the revisions specifically proposed to the MISO Tariff: (i) failed to clarify the extent to which CTS transactions require transmission service reservations; and (ii) did not consistently define "Interface Schedules." FERC also found that abbreviations for "Coordinated Transaction Scheduling Dispatch" should be consistent across the MISO-PJM JOA and the MISO Tariff. Accordingly, FERC directed MISO to submit a compliance filing within 30 days to address these concerns.
A copy of the Commission's order may be found here.
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