At the March 23 Members Committee meeting, PJM presented recent actions by the Federal Energy Regulatory Commission, the results of which relate to the upcoming base residual auction.
The auction, which will begin on May 10, is for the 2020/2021 delivery year.
On March 21, the FERC staff issued an order which accepted PJM’s November filing on aggregation and seasonal capacity, subject to a nominal suspension, and further proceedings and refund. This allows PJM to apply new rules regarding aggregated resources, demand response and measurement and verification, and winter period capacity rights to the auction.
It also means, however, that when the FERC regains a quorum, the commission could review the case and ultimately come to a different conclusion.
- If the FERC does not issue an order by May 9, PJM’s filing goes into effect by operation of law and PJM will conduct the auction with the new rules.
- If the FERC issues a deficiency letter, PJM will conduct the auction with its old rules.
- Should the FERC issue an order to suspend, subject to refund and further order or proceedings, PJM would conduct the auction with the new rules if the suspension ends before the auction, or with the old rules if the suspension ends after the auction.
PJM also announced that oral arguments in the stakeholder appeals against Capacity Performance were held on Feb. 14. It is uncertain when the U.S. Court of Appeals for the District of Columbia Circuit might issue a ruling, although petitioners did ask for a ruling before the start of the May auction.