PJM stakeholders on Wednesday (June 30) successfully completed Stage 4 of the Critical Issue Fast Path (CIFP) process, convened to address concerns over the existing Minimum Offer Price Rule (MOPR).
In a Special Meeting of the Members Committee, Members voted on nine proposed solution packages aimed at modifying the capacity market’s MOPR. Member voting followed a presentation of the proposals earlier in the day before the PJM Board of Managers at the final stage of the CIFP process.
In the afternoon vote, the PJM proposal garnered the most Member support. Voters were permitted to vote in support of any number of proposals, or none at all. The PJM proposal received a score of 4.18 out of 5.00 in the sector-weighted voting. The proposal by American Municipal Power received the second-most favorable votes with a 3.25 out of 5.00.
The results, in the order they were presented, were:
|Sector-weighted Vote (out of 5)
|LS Power (Riverside Generating Company, LLC)
|E-Cubed Policy Associates (sponsored by Elwood Energy)
|Public Service Electric & Gas Company (PSEG)
|Independent Market Monitor (IMM)
|American Municipal Power (AMP)
|Delaware Division of the Public Advocate
Complete voting results will be posted on the CIFP page on July 1.
The Member vote will serve as advisory information to the PJM Board of Managers, which will make the final decision on the content of a filing with the Federal Energy Regulatory Commission (FERC), expected to be submitted in July.
The Board is required to provide feedback to Members and stakeholders about its decision before it directs PJM to file its approved proposal with FERC, with a target filing date of July 16.
This accelerated timeline allows for orderly implementation of protocols required for completion to meet PJM’s goal of using the new framework in the upcoming capacity auction this December to procure capacity in order to meet resource adequacy requirements for the 2023/2024 Delivery Year.
Today’s events marked a significant step in the inaugural use of the CIFP process.
As defined in PJM Manual 34, Section 8.6.4, the CIFP process provides the Board and PJM Members an orderly and facilitated process for contentious issues with known PJM and/or FERC implementation deadlines that were not resolved, or would be extremely difficult to resolve, within the normal stakeholder process.
The CFIP process is to be used on major issues only in extraordinary circumstances (broad impact to markets or significant reliability issues) and is expected to be used very infrequently.
Separate from the MOPR reform process, PJM and its stakeholders will continue deliberation of additional capacity market design issues, including a consideration of how the market must evolve to maintain reliable operation of the evolving bulk power system.
PJM’s capacity market, called the Reliability Pricing Model, ensures long-term grid reliability by securing the appropriate amount of power supply resources needed to meet predicted energy demand on a three-year-forward basis.