The Incremental Auction Senior Task Force failed to reach consensus on any one proposal. The results of a binding poll were reviewed at the task force’s Nov. 30 meeting. A package put forward by PJM received 48.1 percent of the votes.
Next in order of support were proposals from C-Power (23.1 percent), the Independent Market Monitor (21.5 percent), Exelon (21.4 percent) and Direct Energy (4.8 percent).
In a non-binding poll question, 50.27 percent of respondents supported making some change to the status quo.
PJM’s package needed seven additional votes to win over 50 percent of the vote, which would have allowed it to be presented as a main motion at the MRC meeting, explained Brian Chmielewski, senior analyst – Market Simulation.
A motion could be made and seconded at the MRC meeting in order for it to receive a first reading.
After two rounds of voting on eight total packages over 17 meetings, Chmielewski said, the work on the problem statement would be considered finished, unless further direction was received from the MRC.
PJM’s proposal is based on the RTO’s sell-back price being equal to the Base Residual Auction clearing price. It reduces the number of incremental auctions to two and changes the Excess Commitment Credit to a proposed dollar allocation to load instead of the current megawatt allocation, collected from those resources wishing to be excused from their BRA commitment.
The group now faces its second problem statement, to explore the effects of circumstances when the purchase of replacement capacity is cheaper than the clearing price of the applicable BRA.
The group decided to wait until January to begin discussions on the issue, after the first proposal has been considered by the MRC and the IMM has released a forthcoming report on replacement capacity.