On June 9, the Federal Energy Regulatory Commission approved PJM’s Capacity Performance proposal, subject to certain modifications. It will be implemented in the 2018/2019 Base Residual Auction, which will begin Aug. 10, 2015.
All existing generation capacity resources that are capable – or that reasonably can become capable of qualifying as a CP resource by the relevant delivery year – are required to offer into all Reliability Pricing Model auctions as a CP resource.
Sellers seeking an exception to the CP must-offer requirement must submit the exception request to PJM and the Independent Market Monitor no later than June 16, 2015. New requests for exception may be submitted and exception requests that were submitted by the original Jan. 11, 2015, deadline may be amended or withdrawn.
Exceptions to the CP must-offer requirement may be allowed where the Capacity Market seller can demonstrate that the resource is physically incapable of satisfying the requirement of a CP resource. The seller must be able to demonstrate that physical inability to meet the CP requirements.
Requests that describe a financial rather than a physical inability to meet the CP requirements will not be excused from the CP must-offer requirement. It is anticipated, instead, that such cost will be reflected in the CP sell-offer of the resource.
The following are exempt from the requirement to offer as CP (but may do so voluntarily):
- Intermittent resources
- Capacity storage resources
- Demand resources
- Energy efficiency resources
- The IMM will provide an initial determination of the exception request to the Capacity Market seller and PJM by no later than July 1, 2015.
- PJM will provide a final determination on the exception request following the IMM determination by no later than, July 8, 2015.