PJM Interconnection wants to extend a contract with its independent market monitor, Monitoring Analytics LLC, until the end of 2025.
The existing contract is set to expire Dec. 31, 2019, and extending it another six years "has many benefits, including bringing stability and certainty to the market monitoring function to the benefit of all stakeholders," the grid operator told the Federal Energy Regulatory Commission on Sept. 7.
FERC accepted the current contract with Monitoring Analytics in September 2013. Prior to reaching that deal, PJM had considered looking to other entities for market monitoring services. The grid operator, however, ultimately reached a new contract with Monitoring Analytics.
The new market monitoring services agreement, which would take effect Jan. 1, 2020, is quite similar to the existing deal, the grid operator said. The new agreement, however, does include a new audit and reporting requirement and clarifies the protections of the limitation of liabilities protections to additional Monitoring Analytics employees, contractors and consultants, among other changes.
Under the new agreement, Monitoring Analytics will need to have an accounting firm do an "attest engagement" each year to assess whether it has followed procedures and controls in place that relate to calculations and conclusions relating to things such as frequently mitigated unit status, fuel cost policies and all components of cost-based energy market offers. PJM said the review will provide additional assurance and third-party confirmation that the market monitor is carrying out its contract functions consistent with the terms and conditions of the new agreement.
The grid operator said such reviews are "standard practice," and it is intended to make Monitoring Analytics aware of any deficiencies and have an opportunity to fix any issues. (FERC Docket No. ER18-2402)
Also on Sept. 7 PJM filed with FERC revisions to a service-level agreement it has with Monitoring Analytics that sets forth the procedural terms and conditions for the grid operator and market monitor to exchange information. (FERC Docket No. ER18-2403)
PJM asked that FERC sign off both by Nov. 6.