Late Tuesday night, the Federal Energy Regulatory Commission approved PJM’s proposal to include Capacity Performance as part of Reliability Pricing Model Base.
PJM is reviewing the FERC’s order (DOC) to fully understand its impacts.
“In approving PJM’s Capacity Performance proposal, the Federal Energy Regulatory Commission has recognized the need to ensure better generator performance and fuel assurance,” said PJM CEO Terry Boston. “PJM is reviewing FERC’s order to fully understand the impacts, but the order appears to largely support PJPM’s desire to encourage pay for performance.
“As we move forward, we are committed to working closely with members and stakeholders to implement Capacity Performance to ensure reliable power supplies for the people in the region PJM serves.”
Capacity Performance significantly changes the rules under which capacity resources must perform and is intended to improve their performance to ensure adequate resources are available during extreme conditions.
With the decision, PJM will conduct the annual Reliability Pricing Model Base Residual Auction for the 2018/2019 delivery year the week of Aug. 10, 2015. PJM previously said it would schedule the auction within 30-75 days after the FERC order.