Electric Power Supply Association Submits Comments to Federal Energy Regulatory Commission on Market Monitoring

Strategic Insights -

The Electric Power Supply Association (EPSA) has submitted comments to the Federal Energy Regulatory Commission (FERC) regarding market monitoring in the electricity sector. The association argues that market monitors, including the Independent Market Monitor (IMM), should operate within the scope of their Commission-approved tariffs. EPSA takes no position on the details of the dispute between Midcontinent Independent System Operator (MISO) and the IMM, but suggests that if the IMM has acted outside its approved scope, the Commission should disallow cost recovery for those activities. The association emphasizes the importance of transparent and predictable market monitoring for all stakeholders, including customers, market participants, and industry stakeholders.

Key Takeaways:

  • EPSA supports the Commission's policy of ensuring that Market Monitoring Units (MMUs) act within the scope of their Commission-approved tariffs.
  • The association argues that if the IMM has acted outside its approved scope, the Commission should disallow cost recovery for those activities.
  • EPSA believes that transparent and effective market monitoring is critical for predictable and effective market monitoring, which is fundamental for well-functioning and transparent markets.
  • The Commission should continue to follow its existing policy and precedent by ensuring that MMUs are acting within the scope of their Commission-approved tariffs.
  • Market participants, industry stakeholders, and customers benefit from market monitoring paradigms that are predictable, clearly delineated, and consistently enforced.
  • EPSA is concerned that unauthorized market monitoring and oversight by the IMM may lead to unpredictable and ineffective market monitoring.
  • The Commission should clarify the role of any MMU, including the IMM, to ensure that they act in a manner consistent with the Commission-approved tariff for their regional markets.
  • EPSA filed a document-less motion to intervene in this proceeding on March 19, 2025.
  • The association takes no position on the details of the dispute between MISO and the IMM.

Statistics:

  • 2005: The Commission published a Policy Statement on Market Monitoring Units, outlining the critical role that MMUs play in enhancing the competitiveness of ISO/RTO markets.
  • March 1, 2024: The Commission held in Pub. Serv. Comm'n of W. Va. v. PJM Interconnection that PJM's market monitor failed to show that PJM violated its Tariff by excluding the market monitor from participating in a Liaison Committee convened by PJM.
  • May 27, 2005: The Commission published a Policy Statement on Market Monitoring Units, Docket No. PL05-1-000.
  • May 7, 2025: MISO filed a Petition for Declaratory Order, Docket No. EL25-80-000.
  • June 13, 2025: EPSA submitted comments to FERC on market monitoring.

Sources:

  • United States of America Before the Federal Energy Regulatory Commission, Midcontinent Independent System Operator, Inc., Docket No. EL25-80-000.
  • Federal Energy Regulatory Commission, Policy Statement on Market Monitoring Units, Docket No. PL05-1-000 (May 27, 2005).
  • Pub. Serv. Comm'n of W. Va. v. PJM Interconnection, 186 FERC P 61,163, at P 85 (Mar. 1, 2024).
  • Midcontinent Independent System Operator, Inc., Petition for Declaratory Order, Docket No. EL25-80-000, (filed May 7, 2025).