On March 20, 2014, the Federal Energy Regulatory Commission (“FERC”) issued a Notice of Proposed Rulemaking (“NOPR”) to begin to address coordination challenges between the gas and electric industries. In a separate set of Orders, FERC opened 206 proceedings with each ISO/RTO in the United requiring them make a filing within 90 days of a Final Rule on RM14-2-000 to either,
1. propose Tariff changes to adjust the timing of their day-ahead energy market and reliability unit commitment process such that they are sufficiently advance of the Timely and Evening Nomination Cycles, or,
2. show why no tariff changes are necessary.
In its NOPR FERC proposed a set of changes to the timing of the nomination cycles and the gas day itself and requested that the gas and electric industries, through the North American Energy Standards Board (“NAESB”), discuss any changes to FERC’s proposal and file them within 180 days of the issuance of the NOPR. The additional discussion at NAESB did not result in a consensus between the industries and therefore there were no changes or amendments to FERC’s original proposal filed as a result of that process. On April 16, 2014, the NOPR is planned to be discussed at a Sunshine Act Meeting at FERC.
PJM believes that it is important that stakeholders discuss the Final Rule on the NOPR and have sufficient time to review options for moving the day-ahead energy market and reliability unit commitment timelines prior to PJM making its compliance filing 90 days following the Final Rule. This problem statement is intended to initiate that process in anticipation of an FERC taking action in the near future.