The Federal Energy Regulatory Commission on Tuesday issued a notice seeking more information about PJM’s Capacity Performance proposal.
The FERC Office of Energy Market Regulation’s notice includes a series of questions to be answered, many of them focusing on proposed offer cap mechanisms and non-performance charges contained in the Capacity Performance proposal PJM filed in December.
The company currently is reviewing the notice. In a statement, PJM said:
“We will respond to FERC’s questions promptly and seek expedited review to allow Capacity Performance to be in effect for the upcoming annual capacity auction for the 2018/19 delivery year. We recognize that process may require a delay to conduct an orderly auction process.
“While PJM clearly would have welcomed approval, we appreciate the FERC’s thoughtful consideration of our proposal and the Commission’s demonstrated commitment to reliability and enhanced generator performance.”
FERC Commissioner Philip D. Moeller issued a statement dissenting on the Commission’s letter. In it, he said:
“… I believe that this proceeding already contains sufficient information to permit the Commission to issue an order on the merits of PJM’s proposal in advance of the May 2015 Base Residual Auction. Markets provide the best prices for both buyers and sellers when participants know the market rules. Regardless of whether the Commission ultimately decides to accept or reject PJM’s capacity performance proposal, by failing to act, the Commission is creating market uncertainty on issues that need clarity now. For this reason, I believe that we should have acted today on the merits of PJM’s filings …”
The FERC letter is available on the FERC website.