posted on Tuesday, April 17, 2007 2:17 PM by Gunnar Birgisson

PJM Board Orders Investigation after Market Monitor Challenges PJM Management over Independence

At a FERC conference on the role of market monitors in the power industry, a simmering dispute between PJM Market Monitor Joe Bowring and PJM management surfaced when Mr. Bowring accused PJM management of interfering with its independence.  The role of market monitors, including their chain of command, was the key issue in the conference.  Moving past more academic concerns, Mr. Bowring aired his dispute with management.

In oral and written comments delivered to the Commissioners, Mr. Bowring said that while PJM is independent from market participants, PJM, as an organization, has specific interests, which may differ at times from the Market Monitoring Unit's (MMU) goal of providing objective, critical evaluations of markets, of market participants, and of PJM itself.  He said PJM management had ordered changes to the State of the Market Report that is filed with FERC, and also prevented him from presenting to PJM members analyses with which management disagreed.  He also charged PJM management with delaying the release of an MMU report that management opposed.

Mr. Bowring recommended that to ensure the MMU's independence, its employees not be part of the "chain of command" from PJM management.  He stated, however, that PJM appeared to be more interested in hiring outside consultants to perform the market monitoring function.  FERC Chair Joe Kelliher ― who stated he had not previously been aware of this dispute ― asked Bowring to whom the market monitor should report, and suggested that regarding this dispute PJM's side of the story should also be heard.

In response to the allegations on inappropriate interference with the market monitor's work, the PJM Board announced it was hiring an outside party to investigate Mr. Bowring's assertions.