August 17, 2012, Volume 1, Issue 69

08/17/2012

Update:  It appears that PJM’s intent in creating the Cleveland LDA is to isolate areas that have limited transmission capacity to allow for differing capacity prices and incent generators to locate in areas that are deficient in generation. While the OMAEG shares the goal of ensuring a reliable electric grid and adequate supply, through our discussions with other parties, it appears that PJM is not considering the challenges of siting of new generation and transmission facilities in non-attainment and heavily populated areas like Cleveland.  There also appears to be little, if any, coordination between PJM and environmental regulators.   This issue will have a significant impact on the prices that consumers pay for capacity in the future.   Thus, the OMAEG intends to get actively involved in this regional/federal process in order to try to affect members’ interests.  We will follow the PJM process and determine whether it is necessary to weigh in at FERC.  The first important step will be the discussion with PJM staff at the September 5, 2012 meeting at the OMA.

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