Virtual transactions tax

Virtual transactions tax

October 01, 2017 | By Keith Martin in Washington, DC

Pennsylvania took a step back in early October from imposing a new tax on virtual electricity trades across the PJM grid.

The tax had the potential to affect electricity trades as far west as Illinois and Michigan. It was stripped from a budget bill by the house rules committee.

Pennsylvania is trying to close a US$2.2 billion hole in the state budget.

The proposed tax already cleared the state senate.

It is a 5 percent tax on the “gross transaction amount” of three types of electricity hedges transacted in PJM. PJM would collect it from the person initiating the trade. It would be collected at financial settlement. (For more details