Replies

http://www.pjm.com/about-pjm/who-we-are.aspx

PJM Interconnection is a regional transmission organization (RTO) that coordinates the movement of wholesale electricity in all or parts of Delaware, Illinois, Indiana, Kentucky, Maryland, Michigan, New Jersey, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, West Virginia and the District of Columbia.

Acting as a neutral, independent party, PJM operates a competitive wholesale electricity market and manages the high-voltage electricity grid to ensure reliability for more than 61 million people.

PJM’s long-term regional planning process provides a broad, interstate perspective that identifies the most effective and cost-efficient improvements to the grid to ensure reliability and economic benefits on a system wide basis.

An independent Board oversees PJM’s activities. Effective governance and a collaborative stakeholder process help PJM achieve its vision: “To be the electric industry leader – today and tomorrow – in reliable operations, efficient wholesale markets, and infrastructure development.”

An overview of PJM is available, along with the latest Annual Report. Watch the video for an overview of the United States electricity grid. You can contact us to request additional information.

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I would hope their cost is funded through the electrical sales cost.

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http://www.pjm.com/~/media/about-pjm/newsroom/annual-reports/2014-financial-report.ashx

PJM Settlement, Inc. (PJM Settlement) is a wholly owned
subsidiary of PJM, organized as a Pennsylvania nonprofit
corporation, and is a FERC-regulated entity that began
operations on January 1, 2011. PJM Settlement was
formed to handle all of the credit, billing and settlement
functions for PJM’s members’ transactions in the PJM
markets and for transmission service. Prior to 2011,
these functions were completed by PJM. PJM Settlement
acts as a counterparty to members’ pool transactions
in the PJM markets. For the pool transactions in the
PJM markets, flash title passes through PJM Settlement
immediately prior to passing to the ultimate buyer and
seller of the product. This arrangement reinforces PJM’s
authority to continue to net a member’s offsetting financial
positions in PJM markets for credit and billing purposes;
provides clarity in PJM Settlement’s legal standing to
pursue collection from a bankrupt member; and also
complies with the FERC recommendation on credit policy
requirements for competitive wholesale electricity markets.

Sorry, I hit return to soon.

PJM recovers its administrative costs through three elements
under the Open Access Transmission Tariff (Tariff).

The first element is a composite rate. Beginning
October 1, 2011, the composite rate was 29 cents per
megawatt-hour (MWh).

The second element is a rider for the Advanced Second
Control Center (AC2). The Tariff establishes a specific
mechanism for PJM to collect from its members the
actual costs to construct and operate AC2. The recovery of
those costs is from a formula rate set forth in a separate
schedule in the Tariff. The recovery is capped at the
capitalized investment costs and operating costs of
AC2. PJM began to recover costs under this rider in July
2008. The rider is scheduled to expire seven years from
November 2011, which was the in-service date of the
AC2 energy management system. During 2014, 2013 and
2012, $27.8 million, $28.0 million and $28.8 million were
billed under this rider, respectively.

The third element provides for accumulation of a financial
reserve up to six percent of annual revenues and
subsequent refunds to PJM’s members, if applicable.

PJM Settlement recovers its administrative costs under
a separate schedule under the Tariff.