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PJM Settles Multiple Complaints Concerning $1.8 Billion in Non-Performance Charges Assessed in Connection with Winter Storm Elliott

Our client, PJM Interconnection, L.L.C. (PJM), designs, implements, and administers wholesale capacity markets to ensure resource adequacy and reliability for the PJM Region. In March 2023, pursuant to its Tariff, PJM assessed over $1.8 billion in Non-Performance Charges for generator resources that underperformed during the December 2022 Winter Storm Elliott emergency conditions. Numerous generators filed complaints with the alleging that PJM’s assessment of Non-Performance Charges was unlawful or in error, based on various legal and factual theories.

We assisted PJM in vigorously defending the complaints, as sole outside counsel for eleven of the fifteen complaints filed, and were lead outside counsel in settlement negotiations for all of PJM’s Winter Storm Elliott complaint proceedings. The settlement negotiations concluded with an eighty-one party settlement that included underperforming generators, market participants owed bonus payments for overperforming during the Winter Storm Elliott emergency conditions, and PJM, and resolved all allegations included in the Winter Storm Elliott complaints against PJM.