FERC Sets New Date for PJM 2025/2026 Capacity Auction

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The Federal Energy Regulatory Commission issued an order Feb. 26 granting PJM’s request to delay the 2025/2026 capacity auction date by 35 days to July 17, 2024, along with a delay of the associated pre-auction deadlines.

The 2025/2026 Base Residual Auction, as the capacity auction is formally named, was scheduled to take place in June. Given the recent acceptance of the new marginal effective load carrying capability (ELCC) accreditation methodology and associated risk modeling enhancements, various Market Participants had informed PJM that they would like additional time to understand the new ELCC values under the recently accepted accreditation model to help better inform their unit-specific offer cap submissions.

“Thus, delaying the 2025/2026 Base Residual Auction by 35 days allows for an orderly administration of the upcoming Base Residual Auction and provides more time for PJM to provide additional education on ELCC implementation, including how PJM determined the ELCC values applicable for this upcoming auction,” PJM wrote in its Feb. 12 petition. “Such education would provide Market Participants with greater confidence that their respective Accredited UCAP values are accurate and consistent with the approved marginal ELCC methodology.”

PJM conducted two education sessions with stakeholders, on Feb. 16 and Feb. 21.