PJM pitches credit-policy reforms to better monitor credit risk, avoid financial defaults

摘要

New credit-risk evaluations that PJM Interconnection has proposedwould be rolled out to the grid operator’s financial transmission rightsmarket first in an effort to more quickly protect market participantswith the greatest default exposure.The credit risk-management policy reforms (ER20-1451) build onextensive review, analysis, and stakeholder discussions that followed asignificant default in PJM’s FTR market by GreenHat Energy.PJM members bore the cost of GreenHat’s inability to meet itsfinancial obligations, through a default allocation assessment that hadreached $155.1 million for GreenHat positions held through February2020 in addition to a $17.5 million settlement payout to resolve issueswith the manner in which PJM handled the June 21, 2018 default.