Welcome to the website of PJM Settlement, Inc., a subsidiary of PJM Interconnection LLC and a Pennsylvania nonprofit corporation. The subsidiary is established to provide counterparty rights to PJM on behalf of its members in pool transactions. All settlement activities of PJM members are now being handled by the subsidiary.
- issues billing statements to members,
- receives member payments,
- remits member payments,
- manages credit.
All members of PJM are also automatically members of PJM Settlement Inc. Although there is a rate structure for its services, the fees from PJM Settlement Inc. “net to zero” when balanced with credits from PJM, resulting in no additional charges to members.
In addition to acting as a counterparty to members’ pool transactions, the subsidiary has a clearly defined legal standing to collect unpaid balances of a member if they should declare bankruptcy.
PJM has filed the detailed arrangements for PJM Settlement Inc. with the Federal Energy Regulatory Commission (FERC). This title clarity also will enable PJM compliance with a FERC ruling for grid operators on credit policy requirements.