ARR Reassignment for Retail Load Switching Clause Samples

ARR Reassignment for Retail Load Switching. PJM rules provide that when load switches between LSEs during the planning period, a proportional share of associated ARRs that sink into a given control or load aggregation zone is automatically reassigned to follow that load.23 ARR reassignment occurs daily only if the LSE losing load has ARRs with a net positive economic value to that control zone. An LSE gaining load in the same control zone is allocated a proportional share of positively valued ARRs within the control zone based on the shifted load. ARRs are reassigned to the nearest 0.001 MW and any MW of load may be reassigned multiple times over a planning period. Residual ARRs are also subject to the rules of ARR reassignment. This practice supports competition by ensuring that the offset to congestion follows load, thereby removing a barrier to competition among LSEs and, by ensuring that only ARRs with a positive value are reassigned, preventing an LSE from assigning poor ARR choices to other LSEs. However, when ARRs are self scheduled as FTRs, these underlying self-scheduled FTRs do not follow load that shifts while the ARRs do follow load that shifts, and this may diminish the value of the ARRs for the receiving LSE compared to the total value held by the original ARR holder. There were 52,825 MW of ARRs associated with approximately $498,800 of revenue that were reassigned in the 2012 to 2013 planning period. In the first four months of the 2013 to 2014 planning period, there were 25,157 MW of ARRs associated with approximately $125,800 of revenue. Table 13-23 summarizes ARR MW and associated revenue automatically reassigned for network load in each control zone where changes occurred between June 2012 and September 2013. AECO 581 597 $3.0 $2.3 AEP 4,656 1,617 $58.9 $14.2 AP 3,518 876 $84.3 $19.0 ATSI 5,314 2,437 $8.3 $2.6 BGE 3,203 2,056 $37.3 $14.6 ComEd 11,824 5,114 $170.9 $21.1 DAY 589 164 $0.9 $0.3 DEOK 2,979 2,126 $1.6 $2.9 DLCO 2,708 2,996 $19.1 $6.7 DPL 1,989 1,071 $11.5 $7.4 Dominion 0 5 $0.0 $0.1 EKPC NA 0 NA $0.0 JCPL 1,373 710 6 $3.3 Met-Ed 1,107 393 9 $3.1 PECO 3,416 494 23 $4.1 PENELEC 920 408 8 $4.6 PPL 3,198 1,395 21 $5.3 PSEG 2,313 1,044 17 $10.1 Pepco 3,073 1,474 21 $4.2 RECO 67 179 0 $0.1 Total 52,825 25,157 $499.8 $125.8 * Through 30-Sep-2013 23 See PJM. “Manual 6: Financial Transmission Rights,” Revision 12 (July 1, 2009), p. 28. Only ARR holders that had their Stage 1A or Stage 1B ARRs prorated are eligible to receive residual ARRs. Residual ARRs are available if additio...

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ARR Reassignment for Retail Load Switching. PJM rules provide that when load switches between LSEs during the planning period, a proportional share of associated ARRs that sink in a given control or load aggregation zone is automatically reassigned to follow that load.27 ARR reassignment occurs daily only if the LSE losing load has ARRs with a net positive economic value. An LSE gaining load in the same control zone is allocated a proportional share of positively valued ARRs within the control zone based on the shifted load. ARRs are reassigned to the nearest 0.001 MW and may be reassigned multiple times over a planning period. Residual ARRs are also subject to reassignment. This practice supports competition by ensuring that the offset to congestion follows load, thereby removing a barrier to competition among LSEs and, by ensuring that only ARRs with a positive value are reassigned, preventing an LSE from assigning poor ARR choices to other LSEs. However, when ARRs are self scheduled as FTRs, the self scheduled FTRs do not follow load that shifts while the ARRs do follow load that shifts, and this may result in lower value of the ARRs for the receiving LSE compared to the total value held by the original ARR holder. Control Zone AECO 438 121 $3.2 $0.6 AEP 2,271 1,984 $13.0 $24.7 APS 1,660 343 $19.7 $6.4 ATSI 6,235 1,957 $20.6 $20.6 BGE 2,688 691 $57.7 $17.8 ComEd 4,519 1,279 $77.0 $17.2 DAY 1,565 394 $2.8 $2.0 DEOK 4,318 1,396 $23.4 $34.9 DLCO 5,995 2,337 $18.5 $23.6 DPL 1,865 703 $36.5 $15.7 Dominion 13 22 $0.1 $0.2 EKPC 0 0 $0.0 $0.0 JCPL 1,146 363 $2.4 $0.4 Met-Ed 678 241 $5.6 $1.9 PECO 3,226 1,640 $11.1 $11.2 PENELEC 696 218 $7.3 $2.5 PPL 3,447 1,605 $3.2 $3.9 PSEG 1,495 349 $18.6 $4.2 Pepco 2,423 516 $18.9 $6.6 RECO 147 20 $0.0 $0.0 Total 44,823 16,177 $339.5 $194.3 2017/2018 (12 months) 2018/2019 (4 months) 2017/2018 (12 months) 2018/2019 (4 months) There were 44,823 MW of ARRs associated with $339.5 of revenue that were reassigned in the 2017/2018 planning period. There were 16,177 MW of ARRs associated with $194,300 of revenue that were reassigned for the first four months of the 2018/2019 planning period.

ARR Reassignment for Retail Load Switching. Current PJM rules provide that when load switches between LSEs during the planning period, a proportional share of associated ARRs that sink into a given control or load aggregation zone is automatically reassigned to follow that load.56 ARR reassignment occurs daily only if the LSE losing load has ARRs with a net positive economic value to that control zone. An LSE gaining load in the same control zone is allocated a proportional share of positively valued ARRs within the control zone based on the shifted load. ARRs are reassigned to the nearest 0.001 MW and any MW of load may be reassigned multiple times over a planning period. Residual ARRs are also subject to the rules of ARR reassignment. This practice supports competition by ensuring that the offset to congestion follows load, thereby removing a barrier to competition among LSEs and, by ensuring that only ARRs with a positive value are reassigned, preventing an LSE from assigning poor ARR choices to other LSEs. However, when ARRs are self scheduled as FTRs, these underlying self scheduled FTRs do not follow load that shifts while the ARRs do follow load that shifts, and this may diminish the value of the ARR for the receiving LSE compared to the total value held by the original ARR holder. The MMU recommends that when load switches between LSEs during the planning period, a proportional share of the underlying self scheduled FTRs follow the load in the same manner that ARRs do. ARRs are assigned to firm transmission service customers because these customers pay the costs of the transmission system that enables firm energy delivery. At the time of the FTR Annual Auction, ARR holders have the ability to acquire FTRs by choosing to self schedule in the annual FTR auction. When load switches among LSEs during the planning period, the LSE gaining load is reassigned its proportional share of the ARRs from the LSE losing load. After the Annual FTR Auction has occurred, the LSE gaining load does not have the ability to self schedule FTRs associated with the reassigned ARRs. The self scheduled FTRs are obtained as the direct result of the ARR assignment and should therefore follow the reassignment of ARRs when load switches in order to ensure that the new LSE is in the same competitive position as the LSE that lost load. 56 See PJM. “Manual 6: Financial Transmission Rights,” Revision 12 (July 1, 2009), p. 28. Table 12-29 summarizes ARR MW and associated revenue automatically reassigned for network load in eac...