Committees & Groups

Issue Details

Financial Transmission Rights Undiversified Credit Requirement

The undiversified credit adder for net counterflow Financial Transmission Rights (FTR) portfolios was designed in 2008 in response to defaults of counterflow portfolios an area that experienced congestion over an extended period. The undiversified adder requires cleared prices to be calculated, which means the adder cannot be computed until initial clearing of the FTR market.  If a portfolio requires an undiversified adder and the participant has insufficient credit allocated to the FTR market, a one day collateral call is issued.  If the participant does not meet the collateral call their bids are removed and the auction is rerun.  This may cause delays in clearing and creates uncertainty for participants on how much cleared FTR credit will be required. PJM is analyzing replacements to the undiversified portfolio adder.

Issue Details

Strategic Focus Area: Markets
Issue Status: Evaluation in Progress
Stakeholder Body: Credit Subcommittee
Stakeholder Process Status: Options
Issue Catalyst: This issue was first identified in a 2013 survey of the Credit Subcommittee.  Members identified several issues which they were interested in PJM analyzing, with this issue being one of the higher rated priorities.
Date Created: 4.4.2014
MC Approval Date:
Target Completion Date: 4.1.2017
Actual Completion Date: 12.22.2016
FERC Filing(s): Yes
Agreement Change(s): Open Access Transmission Tariff
Manual Change(s): No
MC Annual Plan: 2019
Date Documents
2.12.2018 Meeting materials from the CS meeting
Agenda  PDF
Agenda  PDF
Agenda  DOC
Agenda  DOC
Draft Minutes - CS - 1.11.2018  PDF
Draft Minutes - CS - 1.11.2018  PDF
Item 3A - FTR Credit Enhancements - Problem Statement  PDF
Item 3A - FTR Credit Enhancements - Problem Statement  PDF
Item 3B - FTR Credit Enhancements - Issue Charge  PDF
Item 3B - FTR Credit Enhancements - Issue Charge  PDF
Item 3C - FTR Credit Enhancements  PDF
Item 3C - FTR Credit Enhancements  PDF
Item 3D - FTR Credit Enhancements - Suffolk Fund  PDF
Item 3D - FTR Credit Enhancements - Suffolk Fund  PDF
1.11.2018 Meeting materials from the CS meeting
Agenda  PDF
Agenda  PDF
Agenda  DOC
Agenda  DOC
Draft Minutes - CS - 11.9.2017  PDF
Draft Minutes - CS - 11.9.2017  PDF
Item 2A - FTR Credit Requirements  PDF
Item 2B - FTR Credit Enhancements Problem Statement  PDF
Item 2A - FTR Credit Requirements  PDF
Item 2B - FTR Credit Enhancements Problem Statement  PDF
Item 2C - FTR Credit Enhancements Issue Charge  PDF
Item 2C - FTR Credit Enhancements Issue Charge  PDF
Item 2D - FTR Collateral Proposal  PDF
Item 2D - FTR Collateral Proposal  PDF
4.10.2018 Meeting materials from the CS meeting
Agenda  PDF
Agenda  PDF
Agenda  DOC
Agenda  DOC
Draft Minutes - CS - 3.14.2018  PDF
Draft Minutes - CS - 3.14.2018  PDF
Item 3 - FTR Credit Enhancements  PDF
Item 3 - FTR Credit Enhancements  PDF
11.9.2017 Meeting materials from the CS meeting
Agenda  DOC
Agenda  DOC
Draft Minutes - CS - 9.27.2017  PDF
Draft Minutes - CS - 9.27.2017  PDF
Item 1B - FTR Collateral Proposal  PDF
Item 1B - FTR Collateral Proposal  PDF
3.14.2018 Meeting materials from the CS meeting
Agenda  PDF
Agenda  PDF
Agenda  DOC
Agenda  DOC
Draft Minutes - CS - 2.12.2018  PDF
Draft Minutes - CS - 2.12.2018  PDF
Date Type Documents
There are no governing documents currently associated with this issue