In joint comments at FERC, competitive power generators conditionally support PJM’s request to delay the upcoming capacity auctions.
Date filed: October 22, 2024
Venue: Federal Energy Regulatory Commission (FERC)
Docket Nos.: EL24-148-000 and ER25-118-000 (not consolidated)
Summary:
On October 22, 2024, the Electric Power Supply Association (EPSA) and The PJM Power Providers Group (P3) filed joint comments at the Federal Energy Regulatory Commission (FERC) regarding the PJM Interconnection, L.L.C. (PJM) Motion and Request for Waiver filed concurrently on October 15, 2024, to delay the PJM capacity auctions beginning with the December 2024 Base Residual Auction (BRA) for the 2026/2027 Delivery Year through the 2029/2030 Delivery Year (in light of the cascading effects on timing of subsequent auctions).
While EPSA and P3 disagree with those aspects of PJM’s Motion and Request for Waiver that imply a delay of the 2026/2027 auction is necessary as a result of the Public Interest Organizations (PIOs)’ Complaint regarding treatment of Reliability Must Run (RMR) arrangements in the PJM capacity markets, the organizations believe a limited auction delay is appropriate to address the various shortcomings of the current market design that are nearly certain to reveal themselves should the auction run under current rules.
Specifically, EPSA and P3 only support the Motion and Request for Waiver to delay the auction because of PJM’s stated desire to file a separate Federal Power Act section 205 filing to address tariff flaws that lie beyond the specific subject matter at issue in the PIOs RMR Complaint. If PJM’s purpose in seeking the delay were solely to afford the Commission more time to consider the RMR Complaint, EPSA and P3 would oppose delaying the auction and instead advance their positions in the Complaint proceeding.
