FERC Approves $1.2 Billion PJM Settlement for Outages During 2022 Storm
(Reuters) — The Federal Energy Regulatory Commission (FERC) on Tuesday approved a $1.2 billion settlement between PJM Interconnection and more than 80 parties that resolved complaints stemming from a massive outage during a 2022 winter storm.
More than 15 complaints were brought against PJM for non-performance charges following Winter Storm Elliott, which brought sub-freezing temperatures to two-thirds of the U.S.
Power plant owners that failed to deliver electricity during the storm were slapped with penalties under PJM's capacity performance framework.
The original settlement proposed $1.8 billion in non-performance charges against power suppliers including Energy Harbor and Calpine.
PJM, along with 80 other parties, filed a settlement package with the agency in September to resolve these complaints and avoid a potential litigation.
The parties also agreed to trim non-performance charges to $1.2 billion.
The settlement resolved all but one complaint made by Old Dominion Electric Cooperative.
PJM oversees electricity supply in a 13-state region, managing and paying on-call generators to keep power systems running.
FERC and the North American Electric Reliability Corp. led a joint inquiry into the power outages and blackouts during Elliot and found the cold temperatures caused unplanned electricity generation supply losses of over 70,000 megawatts.
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