Change in Law – PJM Balancing Congestion

On January 31, 2017, the Federal Energy Regulatory Commission (FERC) approved a change to PJM Interconnection’s Open Access Transmission Tariff (OATT) that just recently went into effect. The change will result in the reassignment of Balancing Congestion Costs to retail electric suppliers (and all load serving entities) for their customers effective June 1, 2017.

The impact of the reassignment is a higher cost of service for suppliers and their customers and will manifest as a new item to keep an eye out for on the monthly utility bills. Several suppliers have provided notice of their intent to begin passing these additional costs through to their existing customers per the “change in law” provisions of their contracts. Initial impact estimates are $0.10-$0.40 / MWH or $0.0001-$0.0004 per kWh. For a customer using 500,000 kWh a year, the additional cost would be $50-$200.

If you would like CEA to review your electric supply agreement in detail to determine your supplier’s eligibility to pass through these additional costs, feel free to contact us at


For more information on Balancing Congestion Costs and the change approved by FERC, see the following links: