Examples of PJM Markets in a sentence
Additionally, PJMSettlement, in coordination with PJM, will take such actions as may be required or permitted under the Agreements, including but not limited to the termination of the Participant’s ongoing Transmission Service and participation in PJM Markets.
In event of default under this credit policy or one or more of the Agreements, PJMSettlement, in coordination with PJM, will take such actions as may be required or permitted under the Agreements, including but not limited to the termination of the Participant’s ongoing Transmission Service and participation in PJM Markets.
This Attachment Q describes requirements for: (1) eligibility to be a Market Participant, (2) establishment and maintenance of credit by Market Participants, and (3) collateral requirements and forms of credit support that will be deemed as acceptable to mitigate risk to any PJM Markets.
This Attachment Q also sets forth PJM’s authority to deny, reject, or terminate a Participant’s right to participate in any PJM Markets in order to protect the PJM Markets and PJM Members from unreasonable credit risk from any Participant’s activities.
For this reason, PJM must have the authority to monitor and manage credit risk on an ongoing basis, and to act promptly to mitigate or reduce any unsecured credit risk, in order to protect the PJM Markets and PJM Members from losses.
The formulation of each metric will be consistently applied to all Applicants and Guarantors across industries with slight variations based on identifiable differences in entity type, anticipated market activity, and risks to the PJM Markets and PJM members.
As a consequence, if a Participant defaults on its obligations under this Attachment Q, or PJM determines a Participant represents unreasonable credit risk to the PJM Markets, and the Participant does not post Collateral, additional Collateral or Restricted Collateral in response to a Collateral Call, the result is that the Participant represents unsecured credit risk to the PJM Markets.
The particular metrics and scoring rules differ according to the Applicant’s or Guarantor’s line of business and the PJM Markets in which it anticipates participating, in order to account for varying sources and degrees of risk to the PJM Markets and PJM members.
This Attachment Q also sets forth (1) PJM’s authority to monitor and manage credit risk that a Participant may represent to the PJM Markets and/or PJM membership in general, (2) the basis for establishing limits that will be imposed on a Market Participant in order to minimize risk, and(3) various obligations and requirements the violation of which will result in an Event of Default pursuant to this Attachment Q and the Agreements.
If PJM determines, based on its review of the relevant information and after consultation with the Participant, that the Participant’s participation in any PJM Markets presents an unreasonable credit risk, PJM may reject the Participant’s application to become a Market Participant, notwithstanding applicant’s ability to meet other minimum participation criteria, registration requirements and creditworthiness requirements.