NOTE: Per FERC’s direction on July 22 relative to the AEMA complaint, PJM is looking at changing the schedule for the transitional auctions. This story is no longer accurate. See updates here in Inside Lines.
The new Capacity Performance requirement will be applied in the first of three auctions this summer to begin next Monday, July 27. The first two auctions are transitional, allowing a certain percentage of resources to offer as part of the Capacity Performance requirement. The third auction, which begins Aug. 10, is the annual base residual capacity auction for 2018/2019.
Capacity Performance is a “pay-for-performance” requirement that generators must meet their commitments to deliver electricity whenever PJM determines they are needed to meet power system emergencies.
The transitional auctions on July 27 and August 3 will help market participants prepare for the new Capacity Performance requirements. The Capacity Market page on pjm.com has additional information about the auctions. This is also where auction results will be posted.
Resource participation in the two transition auctions is voluntary. For more background, see previous Capacity Performance coverage in Inside Lines.