The Federal Energy Regulatory Commission issued a notice Sept. 29 indicating that PJM’s proposed amendments to its capacity market rules will take effect immediately, in the absence of Commission action.
PJM will thus implement its proposed amendments to the proposed Minimum Offer Price Rule (MOPR) for the upcoming 2023/2024 Delivery Year capacity auction.
“The Commission did not act on PJM’s filing because the Commissioners are divided two against two as to the lawfulness of the change,” FERC stated in its notice. Written statements from the Commissioners regarding the filing will be added to record, the notice stated.
The 2023/2024 Delivery Year capacity auction is currently scheduled to take place Dec. 1, 2021. In a separate proceeding, and pending FERC approval, PJM requested that it be allowed to delay the auction date to Jan. 25, 2022, to allow for the orderly administration of the upcoming auction given the recent FERC-required changes related to the Market Seller Offer Cap.
The reforms proposed in PJM’s July 30 filing to FERC focus on accommodating state policy choices while protecting against the exercise of buyer-side market power.