FERC Grants PJM Request to Delay Annual Capacity Auction

Today, the Federal Energy Regulatory Commission granted PJM’s request for a one-time waiver of its tariff to allow a short delay in the annual capacity auction, also known as the Reliability Pricing Model Base Residual Auction, for the 2018/2019 delivery year.Order on BRA Deadline Waiver (W0054939x8DF47)

The delay allows the FERC time to rule on PJM’s Capacity Performance filing so that, if the filing were approved, the Capacity Performance product would be part of the auction.

“PJM is pleased that the Federal Energy Regulatory Commission granted PJM’s request to delay its annual capacity auction,” said Andrew Ott, executive vice president – Markets. “PJM made the request because it believes Capacity Performance needs to be part of the next capacity auction so that consumers receive its benefits sooner.”

Capacity Performance significantly changes the rules under which capacity resources are compensated in PJM’s markets and is intended to improve generator performance.

PJM will hold the auction within 30-75 days after the commission order, no later than the week of Aug. 10. The auction potentially would be in June or July. The annual auction will secure capacity for the 2018-2019 delivery year.