Commissioner Christie’s Concurrence to Hunterstown-Kestrel Section 203 Order, EC24-42

Hunterstown Gen Holdings, LLC Kestrel Acquisition, LLC
Docket No. EC24-42-000

I concur in today’s order authorizing, under section 203 of the Federal Power Act, a transaction in which Hunterstown Gen Holdings, LLC will indirectly acquire all of the membership interests of Kestrel Acquisition, LLC (Proposed Transaction) because it is consistent with the Commission’s current policy and regulations implementing section 203.  I write separately, however, to emphasize the Independent Market Monitor for PJM’s (PJM IMM) comprehensive evaluation of the Proposed Transaction.

In particular, based on its evaluation, the PJM IMM has concluded that the Proposed Transaction will increase structural market power in several PJM markets.  The PJM IMM drew this conclusion, in part, by identifying dynamic binding transmission constraints that do not exactly follow the Commission’s previously established, but static, submarkets.  The PJM IMM’s conclusion was also influenced by its use of several tests not currently required under the Commission’s policy and regulations implementing section 203.  Taken together, the PJM IMM’s evaluation and conclusion signal that the Commission’s policy and regulations implementing section 203 may miss the forest for the trees and fail to see the larger impacts that transactions may have on the health of RTO markets.

I commend the PJM IMM for its ceaselessly comprehensive and diligent review of the markets it is tasked with monitoring and appreciate its evaluation here of the Proposed Transaction.  More and more, especially in light of the PJM IMM’s concerns here, I would welcome the opportunity for the Commission to revisit its policy and regulations implementing section 203.[1]

For these reasons, I respectfully concur.