Monitoring Analytics LLC, the independent market monitor for PJM Interconnection LLC, filed a complaint against the grid operator for determining not to assess a penalty to a market participant who violated the fuel cost policy, according to a Dec. 28 filing with the Federal Energy Regulatory Commission. The market monitor said that the violation occurred on Jan. 6, 2018, the day after PJM’s winter peak load day, noting that a “winter peak coinciding with a constrained natural gas market” underscores the importance of such policies for competitive functioning of the energy market.

The market monitor asked the commission to direct the grid operator to impose a penalty against the concerned market seller, saying that the case serves as “an important precedent” regarding the role of fuel cost policies in protecting against market power abuse. PJM’s fuel cost policies are intended to ensure proper development of cost-based offers for market power mitigation on all days, including days when fuel costs rise to extraordinary levels, the monitor said.