PJM Administrative Cost Rates
PJM recovers its administrative costs under Schedules 9-1 through 9-6 in the PJM Open Access Transmission Tariff. There are two broad components to PJM’s administrative cost recovery rate structure.
The first component is a group of stated rates in Tariff Schedules 9-1 through 9-5 that apply to different transactions or billing determinants.
If PJM collects more stated rate revenues under its Tariff than its actual associated expenses for a calendar quarter, and, if the stated rate reserve (6 percent of annual stated rate revenues) is fully funded, then PJM will refund the remaining over-collection according to the Tariff schedules during the following calendar quarter.
To help members estimate their stated rate charges, PJM posts quarterly rates applicable to each stated-rate schedule that includes any refunds that accumulated in the previous calendar quarter.
PJM has the right to file with the FERC for prospective changes to these rates at any time, if necessary.