Membership & Sector Selection
PJM members have signed the PJM Operating Agreement. This agreement grants members certain rights and obligations – such as the right to vote at PJM stakeholder meetings The Operating Agreement establishes five industry sectors to facilitate voting and other activities of members in the PJM stakeholder process. In order to vote, members must select a single sector that best represents their voting interests, even if they may qualify for more than one sector. Requests to change sectors are permitted once per year at the annual meeting of the members.
There are five sectors a member can qualify for:
- Transmission Owner - A member that owns or leases, with rights equivalent to ownership, transmission facilities within the PJM footprint and has signed the PJM Transmission Owners Agreement. Taking transmission service does not qualify a member as a Transmission Owner.
Example: A company that owns and maintains transmission facilities within PJM’s footprint.
Operating Agreement Reference: Section 1.45
- Generation Owner - A member that owns or leases, with right equivalent to ownership, a capacity or energy-only resource within the PJM footprint. For a planned generation resource owner to qualify in the Generation Owner sector, the resource must have cleared a capacity auction. If the planned resource is energy only, the resource must have an executed FERC-jurisdictional interconnection agreement or wholesale market participation agreement. A member that is primarily a retail end-user of electricity that owns generation may qualify as a Generation Owner if they meet additional requirements as specified in the Operating Agreement.
Example: You own a generator within the PJM footprint and want to receive wholesale payments for producing energy, and/or capacity, and/or ancillaries for the PJM grid.
Operating Agreement Reference: Section 1.14
- Electric Distributor - A member that: 1) owns or leases, with rights equivalent to ownership, electric distribution facilities that are used to provide electric distribution service to electric load within the PJM footprint; or 2) is a generation and transmission cooperative or a joint municipal agency that has a member that owns electric distribution facilities used to provide electric distribution service to electric load within the PJM footprint.
Example: Your company owns distribution facilities within PJM’s footprint and has been approved as a Load Serving Entity and wants to transact in the wholesale market to serve your retail customers.
Operating Agreement Reference: Section 1.8
- End-Use Customer - A member that is a retail end-user of electricity within the PJM footprint. A member that is a retail end-user that owns generation may qualify as an End-Use Customer if they accept the obligations set forth in the PJM Operating Agreement. Taking retail service may not be sufficient to qualify a member as an End-Use Customer.
Example: Large industrial retail customers and state offices of consumer advocates.
Operating Agreement Reference: Section 1.11
- Other Supplier - A member that: 1) is engaged in buying, selling or transmitting electric energy, capacity, ancillary services, financial transmission rights or other services available under PJM’s governing documents in or through the interconnection or has a good faith intent to do so, and; 2) does not qualify for the Generation Owner, Electric Distributor, Transmission Owner or End-Use Customer sectors.
Example: Your company has been approved as a competitive Load Serving Entity or Power Marketer and wants to transact in the wholesale market.
Operating Agreement Reference: Section 1.30
Each family of companies may only select a single voting PJM member to participate in senior standing committees (e.g., Members Committee and Markets and Reliability Committee). Affiliates may vote at senior task force and lower level standing committee meetings (e.g., Markets Implementation Committee, Planning Committee and Operating Committee). If a PJM member is related to or affiliated with another PJM member, the family of companies would need to determine which PJM member would retain the rights to vote and the other(s) would then be considered an affiliate(s). Voting members pay an annual fee of $5,000. The annual fee for affiliates is waived.
An entity that is not a member of the End-Use Customer sector and has not been a Market Participant over the past six months, and has no verifiable plans to become a Market Participant over the next six months may be an Associate member. Associate Members may attend stakeholder meetings, but do not have voting privileges, and may not transact in PJM’s markets.