At the direction of the Federal Energy Regulatory Commission, PJM will adjust the schedule for two of its upcoming transitional capacity auctions to allow demand response and energy efficiency providers to participate.
PJM’s Base Residual Auction for the 2018/2019 delivery year is unaffected and will be held Aug. 10.
The July 22 decision by FERC instructs PJM to allow demand response and energy efficiency providers to bid into transition auctions originally planned for July 27 and Aug. 3. Exact dates for the rescheduled transition auctions will be announced soon, but they will likely be in the weeks following the base residual auction.
The transition auctions are needed this year to allow supply resources to commit under the new Capacity Performance requirement for the 2016/2017 and 2017/2018 delivery years.
Capacity Performance, a “pay-for-performance” initiative, places new requirements on supply resources to perform when PJM calls upon them, particularly during system emergencies.
While demand response and energy efficiency are eligible to participate in this year’s base residual auction, PJM believed that their participation in the transition auctions could increase uncertainty due to the pending case in the U.S. Supreme Court to determine FERC’s jurisdiction over demand response.
Look for updates in Inside Lines within the next few business days on the details of the schedule.