Patterns of Ownership. In order to evaluate the ownership of prevailing flow and counter flow FTRs, the MMU categorized all participants owning FTRs in PJM as either physical or financial. Physical entities include utilities and customers which primarily take physical positions in PJM markets. Financial entities include banks, trading firms and hedge funds which primarily take financial positions in PJM markets. International market participants that primarily take financial positions in PJM markets are generally considered to be financial entities even if they are utilities in their own countries. Table 13-12 presents the 2017/2020 long term FTR auction market cleared FTRs by trade type, organization type and FTR direction. The results show that financial entities purchased 77.5 percent of prevailing flow buy bid FTRs and 84.9 percent of counter flow buy bid FTRs with the result that financial entities purchased 80.8 percent of all long term FTR auction cleared buy bids for the 2017/2020 Long Term FTR Auction. Physical entities purchased only 19.2 percent of all available long term FTRs in the 2017/2020 Long Term FTR Auction. Buy Bids Physical 22.5 15.1 19.2 Financial 77.5 84.9 80.8 Total 100.0 100.0 100.0 Sell Offers Physical 36.9 26.6 33.3 Financial 63.1 73.4 66.7 Total 100.0 100.0 100.0 Table 13-13 presents the annual FTR auction cleared FTRs for the 2017/2018 planning period by trade type, organization type and FTR direction. In the Annual FTR Auction for the 2017/2018 planning period, financial entities purchased 77.5 percent of prevailing flow FTRs, up 20.6 percentage points, and 79.7 percent of counter flow FTRs, down 5.2 percentage points, with the results that financial entities purchased 66.6 percent, up one percentage point, of all annual FTR auction cleared buy bids for the 2017/2018 planning period. Trade Type Organization Type Self-Scheduled FTRs FTPrevailing Flow R Direction Counter Flow All Buy Bids Physical Yes 7.2 1.0 4.8 No 32.7 22.3 28.6 Total 39.9 23.3 33.4 Financial No 60.1 76.7 66.6 Total 100.0 100.0 100.0 Sell Offers Physical 21.3 17.6 20.0 Financial 78.7 82.4 80.0 Total 100.0 100.0 100.0 Table 13-14 presents the monthly balance of planning period FTR auction cleared FTRs for 2017 by trade type, organization type and FTR direction. Financial entities purchased 74.3 percent of prevailing flow FTRs, up 1.7 percent, and 82.7 percent of counter flow FTRs, up 0.6 percent, for the year, with the result that financial e...
Patterns of Ownership. For the 2018/2021 Long Term FTR Auction, financial entities purchased 72.0 percent of prevailing flow FTRs and 76.5 percent of counter flow FTRs. For the 2018/2019 Annual FTR Auction, financial participants purchased 66.9 percent of all prevailing flow FTRs and 84.2 percent of all counter flow FTRs. For the Monthly Balance of Planning Period Auctions, financial entities purchased 75.5 percent of prevailing flow and 82.6 percent of counter flow FTRs for January through December of 2018. Financial entities owned 70.9 percent of all prevailing and counter flow FTRs, including 63.7 percent of all prevailing flow FTRs and 81.7 percent of all counter flow FTRs during the period from January through December 2018.
Patterns of Ownership. The overall ownership structure of FTRs and the ownership of prevailing flow and counter flow FTRs is descriptive and is not necessarily a measure of actual or potential FTR market structure issues, as the ownership positions result from competitive auctions. In order to evaluate the ownership of prevailing flow and counter flow FTRs, the MMU categorized all participants owning FTRs in PJM as either physical or financial. Physical entities include utilities and customers which primarily take physical positions in PJM markets. Financial entities include banks and hedge funds which primarily take financial positions in PJM markets. International market participants that primarily take financial positions in PJM markets are generally considered to be financial entities even if they are utilities in their own countries. Table 13-2 presents the Monthly Balance of Planning Period FTR Auction cleared FTRs for January through September 2014 by trade type, organization type and FTR direction. Financial entities purchased 79.4 percent of prevailing flow and 87.8 percent of counter flow FTRs for the year, with the result that financial entities purchased 82.5 percent of all prevailing and counter flow FTR buy bids in the Monthly Balance of Planning Period FTR Auction cleared FTRs for January through September 2014. Buy Bids Physical 20.6% 12.2% 17.5% Financial 79.4% 87.8% 82.5% Total 100.0% 100.0% 100.0% Sell Offers Physical 34.0% 36.1% 34.4% Financial 66.0% 63.9% 65.6% Total 100.0% 100.0% 100.0% Table 13-3 presents the daily net position ownership for all FTRs for January through September 2014, by FTR direction. Physical 39.8% 15.0% 30.6% Financial 60.2% 85.0% 69.4% Total 100.0% 100.0% 100.0%
Patterns of Ownership. In order to evaluate the ownership of prevailing flow and counter flow FTRs, the MMU categorized all participants owning FTRs in PJM as either physical or financial. Physical entities include utilities and customers which primarily take physical positions in PJM markets. Financial entities include banks, trading firms and hedge funds which primarily take financial positions in PJM markets. International market participants that primarily take financial positions in PJM markets are generally considered to be financial entities even if they are utilities in their own countries.
Patterns of Ownership. The overall ownership structure of FTRs and the ownership of prevailing flow and counter flow FTRs is descriptive and is not necessarily a measure of actual or potential FTR market structure issues, as the ownership positions result from competitive auctions. In order to evaluate the ownership of prevailing flow and counter flow FTRs, the MMU categorized all participants owning FTRs in PJM as either physical or financial. Physical entities include utilities and customers which primarily take physical positions in PJM markets. Financial entities include banks and hedge funds which primarily take financial positions in PJM markets. International market participants that primarily take financial positions in PJM markets are generally considered to be financial entities even if they are utilities in their own countries. Table 13-9 presents the Monthly Balance of Planning Period FTR Auction cleared FTRs for 2016 by trade type, organization type and FTR direction. Financial entities purchased 81.7 percent of prevailing flow FTRs, up 4.2 percent, and 75.2 percent of counter flow FTRs, down 10.0 percent, for the year, with the result that financial entities purchased 78.6 percent, down
Patterns of Ownership. In order to evaluate the ownership of prevailing flow and counter flow FTRs, the MMU categorized all participants owning FTRs in PJM as either physical or financial. Physical entities include utilities and customers which primarily take physical positions in PJM markets. Financial entities include banks and hedge funds which primarily take financial positions in PJM markets. International market participants that primarily take financial positions in PJM markets are generally considered to be financial entities even if they are utilities in their own countries. For the Monthly Balance of Planning Period Auctions of January through September 2012, financial entities purchased 81.6 percent of prevailing flow and 86.6 percent of counter flow FTRs for 2012. Financial entities owned 61.6 percent of all prevailing and counter flow FTRs, including 53.3 percent of all prevailing flow FTRs and 79.9 percent of all counter flow FTRs. Table 12-2 presents the Monthly Balance of Planning Period FTR Auction market cleared FTRs for January through September 2012 by trade type, organization type and FTR direction. Buy Bids Physical 18.4% 13.4% 16.2% Financial 81.6% 86.6% 83.8% Total 100.0% 100.0% 100.0% Sell Offers Physical 24.2% 7.5% 18.8% Financial 75.8% 92.5% 81.2% Total 100.0% 100.0% 100.0% 8 Email to Members Committee, “PJM Settlement Member Credit Exposure and Default Disclosure Report – September 2012,” October 11, 2012.
Patterns of Ownership. For the 2015 to 2018 Long Term FTR Auction, financial entities purchased 57.5 percent of prevailing flow FTRs and 80.0 percent of counter flow FTRs. For the Monthly Balance of Planning Period Auctions, financial entities purchased 80.1 percent of prevailing flow and 83.0 percent of counter flow FTRs for January through December of 2014. Financial entities owned 69.7 percent of all prevailing and counter flow FTRs, including 60.7 percent of all prevailing flow FTRs and 84.9 percent of all counter flow FTRs during the period from January through December 2014.
Patterns of Ownership. For the 2017/2020 Long Term FTR Auction, financial entities purchased 77.5 percent of prevailing flow FTRs and 84.9 percent of counter flow FTRs. For the 2017/2018 Annual FTR Auction, financial participants purchased 60.1 percent of all prevailing flow FTRs and 76.7 percent of all counter flow FTRs. For the Monthly Balance of Planning Period Auctions, financial entities purchased 74.3 percent of prevailing flow and 82.7 percent of counter flow FTRs January through December of 2017. Financial entities owned 59.6 percent of all prevailing and counter flow FTRs, including 50.4 percent of all prevailing flow FTRs and 71.9 percent of all counter flow FTRs during the period from January through December, 2017. • FTR Forfeitures. FTR forfeitures were not billed after January 19, 2017, pending retroactive implementation of a new FTR forfeiture rule. As of the September bill, PJM has begun retroactive billing under the new FTR forfeiture rule. In the period without FTR forfeiture bills, no information on forfeitures was provided to participants and behavior could not be adjusted. • Credit Issues. There were two collateral defaults in 2017, for a total of $318,746. Both defaults were cured reasonably promptly.
Patterns of Ownership. The overall ownership structure of FTRs and the ownership of prevailing flow and counter flow FTRs is descriptive and is not necessarily a measure of actual or potential FTR market structure issues, as the ownership positions result from competitive auctions. In order to evaluate the ownership of prevailing flow and counter flow FTRs, the MMU categorized all participants owning FTRs in PJM as either physical or financial. Physical entities include utilities and customers which primarily take physical positions in PJM markets. Financial entities include banks and hedge funds which primarily take financial positions in PJM markets. International market participants that primarily take financial positions in PJM markets are generally considered to be financial entities even if they are utilities in their own countries. Table 13-16 presents the 2017 to 2020 Long Term FTR Auction market cleared FTRs by trade type, organization type and FTR direction. The results show that financial entities purchased 77.5 percent of prevailing flow buy bid FTRs and 84.9 percent of counter flow buy bid FTRs with the result that financial entities purchased 80.8 percent of all Long Term FTR Auction cleared buy bids for the 2017 to 2020 Long Term FTR Auction.
Patterns of Ownership. For the 2016 to 2019 Long Term FTR Auction, financial entities purchased 70.1 percent of prevailing flow FTRs and 78.5 percent of counter flow FTRs. For the 2015 to 2016 Annual FTR Auction, financial participants purchased 56.3 percent of all prevailing flow FTRs and 75.0 percent of all counter flow FTRs. For the Monthly Balance of Planning Period Auctions, financial entities purchased 74.9 percent of prevailing flow and 76.8 percent of counter flow FTRs for January through December of 2015. Financial entities owned 65.9 percent of all prevailing and counter flow FTRs, including 60.6 percent of all prevailing flow FTRs and 79.6 percent of all counter flow FTRs during the period from January through December 2015. • FTR Forfeitures. Total forfeitures for the 2015 to 2016 planning period were $0.2 million for Increment Offers, Decrement Bids and UTC Transactions. • Credit Issues. There were three collateral defaults and seven payment defaults for 2015. Two collateral defaults totaled $710,300 and seven payment defaults totaled $1,726,641 for Intergrid Mideast Group, LLC. There was one other collateral default for the first nine months of 2015 for $35,000, which was promptly cured. There were no additional defaults in the last quarter of 2015. PJM terminated Intergrid’s membership as of April 23, 2015, and XXXX approved PJM’s termination as of June 23, 2015. Some of Intergrid’s invoices were paid through Intergrid, a guarantor or cash collateral posted with PJM. Intergrid held FTRs at the time they were declared in default. PJM has liquidated all of Intergrid’s FTR positions in accordance with Section 7.3.9 of the Operating Agreement.3 PJM liquidated 500.8 MW of Intergrid’s FTRs in the June Monthly Balance of Planning Period Auction for a net of $509,732 in revenue. PJM also liquidated 417.2 MW of Long Term FTRs for various planning periods for a net of $230,318 in cost. The net revenue result of Intergrid’s FTR liquidation is $279,414. PJM has notified its Members that the Intergrid default will not result in any default allocation assessments in accordance with Section 15.2.2 of the Operating Agreement.4
