FERC Order Delays Capacity Auction To Allow for Consideration of Resource Adequacy Reform

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The Federal Energy Regulatory Commission issued an order June 9 accepting PJM’s proposal to revise upcoming Base Residual and Incremental Auction schedules for the 2025/2026 through 2028/2029 Delivery Years.

This action reschedules the June 14, 2023, capacity auction until June 2024 and realigns subsequent auctions every six months after that through May 2026, in accordance with a revised schedule to be submitted to FERC by June 26.

FERC’s order (PDF) postpones capacity auctions beginning with the 2025/2026 Delivery Year through the 2028/2029 Delivery Year, which will first allow for Commission consideration of anticipated capacity market enhancements that is expected to be filed by October 1, 2023. PJM and stakeholders are currently working toward crafting that package of proposals to improve resource adequacy through the accelerated Critical Issue Fast Path process.

The capacity market reforms being fast tracked in the stakeholder process are designed to proactively address potential reliability concerns identified in “Energy Transition in PJM: Resource Retirements, Replacements & Risks.”  Learn more about how PJM is working to ensure a reliable energy transition, and offer solutions to reliability challenges through research, analysis and collaboration across government and industry.