Committees & Groups

Issue Details

Fuel Cost Policy

Fuel Cost Policies, as defined in PJM Operating Agreement (OA) Schedule 2 and in the PJM OATT (Tariff), document the process by which a PJM generating resource (Market Seller) calculates the fuel cost component of a generating resource’s cost-based energy market offer. Pursuant to OA Schedule 2, a Market Seller may only submit a non-zero cost-based energy market offer if it has a PJM-approved Fuel Cost Policy consistent with each fuel type on which the resource can operate. On an annual basis, Market Sellers are required to either submit to PJM and the Independent Market Monitor for PJM (IMM) an updated Fuel Cost Policy that complies with OA Schedule 2 or confirm that their currently effective and approved Fuel Cost Policy remains compliant. PJM may assess a penalty, under OA Schedule 2, if PJM determines, with the agreement of the IMM, that a resource has submitted a cost-based offer that does not comply with the Fuel Cost Policy or if a cost-based offer is not in compliance with the OA Schedule 2. All Market Sellers were required to have a PJM-approved Fuel Cost Policy for each fuel type by May 15, 2017. Updated Fuel Cost Policies were required as part of the move to Hourly Offers on November 1, 2017. Based on the first year of experience with PJM Fuel Cost Policies, there may be potential improvements to the rules and process governing Fuel Cost Policies and potential improvements to the current PJM approach to establishing cost-based offers.

Issue Details

Strategic Focus Area: Markets
Issue Status: Solution Alternatives Proposed
Stakeholder Body: Market Implementation Committee
Stakeholder Process Status: Packages
Issue Catalyst: SMECO, ODEC, PPGI
Date Created: 9.12.2018
MC Approval Date:
Target Completion Date: 11.29.2019
Actual Completion Date:
FERC Filing(s): Yes
Agreement Change(s): Open Access Transmission Tariff, Operating Agreement
Manual Change(s): No
MC Annual Plan: 2019
Date Documents
8.7.2019 Meeting materials from the MIC meeting
Draft Minutes - MIC - 7.10.2019  PDF
Draft Minutes - MIC - 7.10.2019  PDF
5.3.2019 Meeting materials from the MIC Special Session - Fuel Cost Policy Enhancements meeting
Agenda  PDF
Draft Minutes - Special MIC - 4.17.2019  PDF
Agenda  PDF
Item 6 - ACES FirstEnergy Penalty Calculation Example  PDF
Item 7 - BETM-CPV Penalty Calculation Example  PDF
Draft Minutes - Special MIC - 4.17.2019  PDF
Item 9 - Calpine Cost Offer Proposal  PDF
Item 6 - ACES FirstEnergy Penalty Calculation Example  PDF
FCP Package Comparison  XLS
Item 7 - BETM-CPV Penalty Calculation Example  PDF
Item 9 - Calpine Cost Offer Proposal  PDF
IMM FCP Penalty Proposal  PDF
FCP Package Comparison  XLS
Options & Packages Matrix  XLS
IMM FCP Penalty Proposal  PDF
Options & Packages Matrix - Post Meeting  XLS
PJM Penalty Calculation Example  PDF
Options & Packages Matrix  XLS
Options & Packages Matrix - Post Meeting  XLS
Work Plan  PDF
PJM Penalty Calculation Example  PDF
Work Plan  PDF
10.10.2018 Meeting materials from the MIC meeting
Item 1 - Draft Minutes - MIC - 9.12.2018  PDF
Item 1 - Draft Minutes - MIC - 9.12.2018  PDF
9.24.2018 Meeting materials from the MC Webinar meeting
Item 9B - MIC Report  PDF
Item 9B - MIC Report  PDF
3.20.2019 Meeting materials from the MIC Special Session - Fuel Cost Policy Enhancements meeting
Agenda  PDF
Agenda  DOC
Draft Minutes - Special MIC - 2.15.2019  PDF
IMM FCP Penalty Proposal  PDF
Options & Packages Matrix  XLS
Agenda  PDF
Agenda  DOC
Draft Minutes - Special MIC - 2.15.2019  PDF
IMM FCP Penalty Proposal  PDF
Options & Packages Matrix  XLS
10.10.2019 Meeting materials from the MIC Special Session - Fuel Cost Policy Enhancements meeting
Agenda  PDF
Agenda  DOC
Draft Minutes - Special MIC - 9.16.2019  PDF
Item 2 - Options & Packages Matrix for KWA #3  XLS
Item 2 - Options & Packages Matrix for KWA #3 - Post Meeting  XLS
Agenda  PDF
Item 3 - Revised Draft Revocation Language  PDF
Items 5 & 6 - Options & Packages Matrix for KWA #4  XLS
Agenda  DOC
Items 5 & 6 - Options & Packages Matrix for KWA #4 - Post Meeting  XLS
Draft Minutes - Special MIC - 9.16.2019  PDF
MIC Penalty Example  XLS
Item 2 - Options & Packages Matrix for KWA #3  XLS
Item 2 - Options & Packages Matrix for KWA #3 - Post Meeting  XLS
Item 3 - Revised Draft Revocation Language  PDF
Items 5 & 6 - Options & Packages Matrix for KWA #4  XLS
Items 5 & 6 - Options & Packages Matrix for KWA #4 - Post Meeting  XLS
MIC Penalty Example  XLS
7.10.2019 Meeting materials from the MIC meeting
Agenda  PDF
Agenda  PDF
Item 8A - Fuel Cost Policy  PDF
Item 8A - Fuel Cost Policy  PDF
Item 8B - Fuel Cost Policy - Package Comparison  XLS
Item 8C - Fuel Cost Policy Matrix  XLS
Item 8B - Fuel Cost Policy - Package Comparison  XLS
Item 8D - Fuel Cost Policy Matrix - Redline  XLS
Item 8C - Fuel Cost Policy Matrix  XLS
Item 8E - Fuel Cost Policy - IMM Proposal  PDF
Item 8D - Fuel Cost Policy Matrix - Redline  XLS
Item 8F - Fuel Cost Policy - PJM Proposal  PDF
Item 8E - Fuel Cost Policy - IMM Proposal  PDF
Item 8G - Fuel Cost Policy - Joint Stakeholder Proposal  PDF
Item 8F - Fuel Cost Policy - PJM Proposal  PDF
Item 8G - Fuel Cost Policy - Joint Stakeholder Proposal  PDF
12.12.2018 Meeting materials from the MIC meeting
Agenda  PDF
Agenda  DOC
Agenda  PDF
Agenda  DOC
Item 3 - Fuel Cost Policy Matrix  XLS
Item 3A - Fuel Cost Policy - Work Plan  PDF
Item 3 - Fuel Cost Policy Matrix  XLS
Item 3A - Fuel Cost Policy - Work Plan  PDF
9.23.2019 Meeting materials from the MC Webinar meeting
Item 7C - MIC Report  PDF
Item 7C - MIC Report  PDF
4.17.2019 Meeting materials from the MIC Special Session - Fuel Cost Policy Enhancements meeting
Agenda  PDF
Agenda  PDF
Agenda  DOC
Draft Minutes - Special MIC - 3.20.2019  PDF
Agenda  DOC
Draft Minutes - Special MIC - 3.20.2019  PDF
2.15.2019 Meeting materials from the MIC Special Session - Fuel Cost Policy Enhancements meeting
Agenda  PDF
Agenda  DOC
Draft Minutes - Special MIC - 1.29.2019  PDF
Options & Packages Matrix  XLS
Options & Packages Matrix - Post Meeting  XLS
Agenda  PDF
Agenda  DOC
Draft Minutes - Special MIC - 1.29.2019  PDF
Options & Packages Matrix  XLS
Options & Packages Matrix - Post Meeting  XLS
9.12.2018 Meeting materials from the MIC meeting
Agenda  PDF
Agenda  PDF
Agenda  DOC
Agenda  DOC
Item 1 - Draft Minutes - MIC - 8.8.2018  PDF
Item 2A - Fuel Cost Policy Problem Statement Issue Charge  PDF
Item 2B - Fuel Cost Policy Problem Statement Issue Charge Redline  PDF
Item 1 - Draft Minutes - MIC - 8.8.2018  PDF
Item 2A - Fuel Cost Policy Problem Statement Issue Charge  PDF
Item 2B - Fuel Cost Policy Problem Statement Issue Charge Redline  PDF
6.21.2019 Meeting materials from the MIC Special Session - Fuel Cost Policy Enhancements meeting
Agenda  PDF
Agenda  DOC
Draft Minutes - Special MIC - 5.3.2019  PDF
Item 2 - Updated Work Plan  XLS
Item 3 - Options and Packages Matrix - Joint Stakeholder Proposal  XLS
Agenda  PDF
Item 3 - Options and Packages Matrix - Joint Stakeholder Proposal - Post Meeting  XLS
Agenda  DOC
Draft Minutes - Special MIC - 5.3.2019  PDF
Item 2 - Updated Work Plan  XLS
Item 3 - Options and Packages Matrix - Joint Stakeholder Proposal  XLS
Item 3 - Options and Packages Matrix - Joint Stakeholder Proposal - Post Meeting  XLS
12.4.2018 Meeting materials from the MIC Special Session - Fuel Cost Policy Enhancements meeting
Agenda  PDF
Agenda  DOC
Draft Minutes - Fuel Cost Policy Enhancements MIC Special Session – 11.2.2018  PDF
Agenda  PDF
Agenda  DOC
Draft Minutes - Fuel Cost Policy Enhancements MIC Special Session – 11.2.2018  PDF
8.9.2019 Meeting materials from the MIC Special Session - Fuel Cost Policy Enhancements meeting
Agenda  PDF
Draft Minutes - MIC Fuel Cost Policy Enhancements - 7.9.2019  PDF
Item 2 - Options & Packages Matrix   XLS
Agenda  PDF
Item 2 - Options & Packages Matrix - Post Meeting  XLS
Draft Minutes - MIC Fuel Cost Policy Enhancements - 7.9.2019  PDF
Item 2 - Options & Packages Matrix   XLS
Item 2 - Potential Compromise Proposal   PDF
Item 2 - Options & Packages Matrix - Post Meeting  XLS
Item 3 - PJM Education - ISO NE Reference Pricing  PDF
Item 2 - Potential Compromise Proposal   PDF
Item 4 - Calpine Cost Offer Proposal Advocacy Presentation  PDF
Item 3 - PJM Education - ISO NE Reference Pricing  PDF
Item 4 - Calpine Cost Offer Proposal Advocacy Presentation  PDF
8.8.2018 Meeting materials from the MIC meeting
Agenda  PDF
Agenda  PDF
Agenda  DOC
Agenda  DOC
Item 4 - Fuel Cost Policy - Problem Statement - Issue Charge  PDF
Item 4 - Fuel Cost Policy - Problem Statement - Issue Charge  PDF
8.19.2019 Meeting materials from the MC Webinar meeting
Item 6C - MIC Report - July  PDF
Item 6C - MIC Report - July  PDF
1.29.2019 Meeting materials from the MIC Special Session - Fuel Cost Policy Enhancements meeting
Agenda  PDF
Agenda  DOC
Draft Minutes - Fuel Cost Policy - MIC Special Session - 1.11.2019  PDF
Options & Packages Matrix  XLS
Options and Packages Matrix - Post Meeting  XLS
Agenda  PDF
Agenda  DOC
Draft Minutes - Fuel Cost Policy - MIC Special Session - 1.11.2019  PDF
Options & Packages Matrix  XLS
Options and Packages Matrix - Post Meeting  XLS
2.6.2019 Meeting materials from the MIC meeting
Agenda  PDF
Agenda  PDF
Agenda  DOC
Item 6 - Fuel Cost Policy Marix  XLS
Agenda  DOC
Item 6A - Fuel Cost Policy Enhancements  PDF
Item 6 - Fuel Cost Policy Marix  XLS
Item 6A - Fuel Cost Policy Enhancements  PDF
11.2.2018 Meeting materials from the MIC Special Session: Fuel Cost Policy Enhancements meeting
Agenda  PDF
Agenda  DOC
Item 2A - Fuel Cost Policy Problem Statement - Issue Charge  PDF
FCP Education Session - IMM  PDF
FCP Work Plan  PDF
Agenda  PDF
PJM Fuel Cost Policy Education  PDF
Agenda  DOC
Item 2A - Fuel Cost Policy Problem Statement - Issue Charge  PDF
FCP Education Session - IMM  PDF
FCP Work Plan  PDF
PJM Fuel Cost Policy Education  PDF
1.11.2019 Meeting materials from the MIC Special Session - Fuel Cost Policy Enhancements meeting
Agenda  PDF
Agenda  DOC
Draft Minutes - MIC Special Session: Fuel Cost Policy Enhancements - 12.4.2018  PDF
Item 2 - Stakeholder Process Template - Options and Packages Matrix  XLS
Agenda  PDF
Agenda  DOC
Draft Minutes - MIC Special Session: Fuel Cost Policy Enhancements - 12.4.2018  PDF
Item 2 - Stakeholder Process Template - Options and Packages Matrix  XLS
7.19.2019 Meeting materials from the MIC Special Session - Fuel Cost Policy Enhancements meeting
Agenda  PDF
Draft Minutes - Special MIC - 6.21.2019  PDF
Item 2 - Options & Packages Matrix  XLS
Agenda  PDF
Item 4 - Joint Stakeholder Proposal Cap Example  PDF
Draft Minutes - Special MIC - 6.21.2019  PDF
Package Comparison Document  XLS
Item 2 - Options & Packages Matrix  XLS
Item 4 - Joint Stakeholder Proposal Cap Example  PDF
Package Comparison Document  XLS
9.16.2019 Meeting materials from the MIC Special Session - Fuel Cost Policy Enhancements meeting
Agenda  PDF
Draft Minutes - MIC Fuel Cost Policy Enhancements - 8.9.2019  PDF
Item 3 - Compromise Proposal  XLS
Item 4 - Draft Compromise Proposal Revocation Language  PDF
Item 5 - MIC Penalty Calculation  XLS
Item 7 - NYISO Fuel Cost Adjustment Process  PDF
Item 8 - KWA #4 Options & Packages Matrix  XLS
Agenda  PDF
Draft Minutes - MIC Fuel Cost Policy Enhancements - 8.9.2019  PDF
Item 9 - Calpine KWA #4 Proposal  XLS
Item 3 - Compromise Proposal  XLS
KWA #3 Options & Packages Matrix - Post Meeting  XLS
Revised Revocation Language - Post Meeting  PDF
Item 4 - Draft Compromise Proposal Revocation Language  PDF
Item 5 - MIC Penalty Calculation  XLS
Item 7 - NYISO Fuel Cost Adjustment Process  PDF
Item 8 - KWA #4 Options & Packages Matrix  XLS
Item 9 - Calpine KWA #4 Proposal  XLS
KWA #3 Options & Packages Matrix - Post Meeting  XLS
Revised Revocation Language - Post Meeting  PDF
Date Type Documents
There are no governing documents currently associated with this issue