FERC Approves New Contract Between PJM, Independent Market Monitor
October 02, 2013
The Federal Energy Regulatory Commission approved a new contract between PJM and its independent market monitor, Joseph Bowring's firm Monitoring Analytics. The current deal expires in July and the RTO had considered opening up the position for bidding. But many comment filers, including state regulators, wanted Bowring to continue in the position, and the contract will keep his firm as the monitor until the end of this decade. The new deal is similar to the existing one, but PJM told FERC it reflected some of the experience gained over the past five years with the current contract. Several positions have been added to promote communication between the monitor and the RTO and to ensure the markets remain competitive and free of manipulation. The contract also provides for regular performance reviews of the monitor's work, but they are not like those done in an “employer-employee relationship,” PJM said. Additionally, the board will not have any authority to manage or direct the activities of the independent market monitoring function.