Pjm Membership Agreement
The members of the PJM signed the PJM Enterprise Agreement. This agreement grants certain rights and obligations to members, such as the right to vote at PJM stakeholder meetings. The Enterprise Agreement defines five industrial sectors to facilitate the coordination and other activities of members in the PJM stakeholder process. In order to vote, members must choose a single sector that best represents their voting interests, even if they can qualify for more than one sector. Applications for sector changes are eligible once a year at the annual meeting of members. PJM has entered into agreements with stakeholders to ensure the reliability of the electricity grid. Agreements are with members, independent network managers, regional transportation agencies, the Federal Energy Regulatory Commission and the North American Electric Reliability Corporation. Shell`s petition also explains that GreenHat filed an infringement action against Shell in Texas in November 2018, in which shell claimed that Shell had not paid about $68 million for approximately 3,879 FTRs. GreenHat argues that by entering data reflecting FTR transfers into the FTR Center, the parties entered into thousands of separate and stand-alone agreements for the purchase of certain FTRTs. , that is, GreenHat and Shell created new contracts by entering data into PJM`s FTR centre to report bilateral transactions, separately and with the exception of the three written agreements concluded by the parties. Shell`s petition argues that it has already fulfilled all of its obligations to GreenHat and that GreenHat`s appeal to the State Court is ultimately rooted in Shell`s obligation to comply with the PJM tariff requirements. Shell`s petition is not only asking FERC to ask FERC to interpret the PJM tariff to confirm that the parties control written bilateral agreements; that the ftR centre is merely a reporting mechanism for bilateral transfers; and that the transfer of data to the FTR Center for notification of the transmission of the FTR does not create a separate and autonomous contract between the parties to the bilateral agreement or does not alter bilateral agreements between the parties. Shell and GreenHat entered into three written agreements covering three bilateral transactions between August 2016 and February 2017.
In its May 29 petition, Shell stated that GreenHat, although it has issued all obligations arising from these agreements and that greenHat made a final lump sum payment in June 2017, has begun sending additional invoices to Shell. Shell`s petition states that it refused to pay these invoices and indicates that the total amount of these additional invoices corresponds to an agreement between GreenHat and PJM that GreenHat sold $62.2 million a year to PJM.