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Issue Details

Default Liquidation Provisions

Under Operating Agreement section 15.2, when a Member defaults on a payment obligation, the net shortfall, after liquidating the Member’s positions and applying any applicable setoffs, is absorbed by the remaining membership.  There are, however, no provisions in the PJM governing documents to account for the situation that can occur when the liquidation results in a net gain, and the net gain exceeds all other obligations of the Member.
 
Additionally, although there are defined rules for liquidating the FTR positions of a defaulting member, there are currently no defined rules for liquidating the RPM commitments of a defaulting member.

Issue Details

Strategic Focus Area: Administration
Issue Status: Evaluation in Progress
Stakeholder Body: Credit Subcommittee
Stakeholder Process Status: Approved
Issue Catalyst: PJM
Date Created: 6.7.2017
MC Approval Date:
Target Completion Date: 12.31.2017
Actual Completion Date:
FERC Filing(s): TBD
Agreement Change(s): Open Access Transmission Tariff, Reliability Assurance Agreement
Manual Change(s): No
MC Annual Plan: 2020
Date Documents
2.12.2018 Meeting materials from the CS meeting
Agenda  PDF
Agenda  DOC
Draft Minutes - CS - 1.11.2018  PDF
6.15.2018 Meeting materials from the CS meeting
Agenda  PDF
Agenda  DOC
Draft Minutes - CS - 6.4.2018  PDF
9.28.2018 Meeting materials from the CS meeting
Agenda  PDF
Agenda  DOC
8.21.2018 Meeting materials from the CS meeting
Agenda  PDF
Agenda  DOC
1.11.2018 Meeting materials from the CS meeting
Agenda  PDF
Agenda  DOC
Draft Minutes - CS - 11.9.2017  PDF
7.13.2018 Meeting materials from the CS meeting
Agenda  PDF
Agenda  DOC
6.7.2017 Meeting materials from the MIC meeting
Agenda  PDF
Item 2 - Draft Minutes - MIC - 5.3.2017  PDF
Item 10A - Default Liquidation Provisions - CS  PDF
Item 10B - Default Liquidation Provisions Problem Statement  PDF
Item 10C - Default Liquidation Provisions Issue Charge  PDF
Item 10C - Default Liquidation Provisions Issue Charge - Post-Meeting  PDF
8.1.2017 Meeting materials from the CS meeting
Draft Minutes - CS - 7.11.2017  PDF
9.17.2018 Meeting materials from the CS meeting
Draft Minutes - CS - 8.21.2018  PDF
5.3.2017 Meeting materials from the MIC meeting
Agenda  PDF
Agenda  DOC
Item 11A - Default Liquidation Provisions - CS  PDF
Item 11B - Default Liquidation Provisions Problem Statement  PDF
Item 11C - Default Liquidation Provisions Issue Charge  PDF
11.9.2017 Meeting materials from the CS meeting
Agenda  PDF
Agenda  DOC
7.12.2017 Meeting materials from the MIC meeting
Item 2 - Draft Minutes - MIC - 6.7.2017  PDF
3.14.2018 Meeting materials from the CS meeting
Agenda  PDF
Agenda  DOC
Draft Minutes - CS - 2.12.2018  PDF
Date Type Documents
There are no governing documents currently associated with this issue