PJM and its stakeholders discussed market rule changes meant to address barriers for seasonal resources to participate in the PJM capacity market at the Seasonal Capacity Resources Senior Task Force meeting Aug. 1.
The task force is examining ways in which seasonal resources – those unable to meet an annual performance commitment or that have a significant difference in their availability throughout the year –participate as capacity resources in the Reliability Pricing Model.
The proposals discussed at the meeting include concepts examining how to improve the aggregate resource offer and clearing process, how to procure capacity on a seasonal rather than annual basis and continuing the practice of clearing non-annual resources in the 2020/2021 delivery year auction.
With the elimination of base capacity in the 2020/2021 Delivery Year, Capacity Performance will be the sole capacity product. As part of the transition to Capacity Performance, PJM developed rules to allow non-annual resources to aggregate and submit a single Capacity Performance offer.
Only one aggregate offer was submitted over the course of the transition auctions. As a result, PJM and stakeholders established the task force as a way to evaluate ways to incorporate seasonal resources into RPM in a more meaningful way.
In order for new rules to be in place for the base residual auction in 2017, PJM would have to file any changes to its tariff with the Federal Energy Regulatory Commission in the late fall. In addition, PJM would update Manual 18: Capacity Market Operations through the stakeholder process.
The task force and stakeholders will continue to update and refine proposals at the task force’s next meeting Aug. 12.