PJM Offer Verification Changes

PJM in compliance with FERC order 831 will be implementing offer verification changes to ensure that a resource’s cost-based incremental energy offer reasonably reflects that resource’s actual or expected costs.

Offer caps will include:

  • Validation of cost of incremental energy offers that exceed $1,000/MWh before the unit is allowed to set LMP
  • Maximum incremental cost allowed to set LMP at $2,000/MWh

  • Manual verification go live is occurring between December 2017 and February 2018

  • Cost Offers > $1,000 will be rejected in Markets Gateway
  • Market Seller must submit an offer equal to $1,000 in Markets Gateway, and provide PJM an excel template with the desired offer curve through SharePoint (Most up-to-date contacts in CAM)

  • Automated verification will is anticipated to go live in March 2018

  • Automated screen applied in Markets Gateway at time of offer submission
  • Cost Offers > $1,000 will be capped at the at the greater of $1,000, or the price on the most expensive verified segment on the curve

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