PJM will not pursue RMR-related revisions to its tariff in the wake of FERC’s rejection of the initial filing to enter into agreements outside of the capacity market for the 2015/2016 delivery year. Michael Kormos, executive vice president – Operations, reported the decision to the Markets and Reliability Committee this morning.
According to Kormos, PJM’s decision to not pursue further action was based on several factors, including:
- Since the time of PJM’s FERC filing, PJM has confirmed that 500 megawatts set to deactivate due to the Mercury and Air Toxics rule will stay online for another year, and thereby will be available to provide additional energy in the winter of 2015/16.
- PJM successfully gained a waiver from FERC of its requirement to sell back 2,000 megawatts in the Third Incremental Auction for the 2015/2016 delivery year.
- Approximately 1,800 megawatts of planned units that have a commitment for 2016/2017, but not 2015/2016, are likely to come online earlier than expected; most (but not all) of those megawatts will be available on an energy-only basis for some portion of the winter 2015/2016 period.
Noting that circumstances may change, Kormos noted “We reserve the right to change our minds.” Kormos also expressed PJM’s appreciation to generators for their help preparing for the winter of 2015/2016.