PJM and stakeholders have finalized nine proposals to modify the capacity market’s Minimum Offer Price Rule to better accommodate the evolving resource mix and state energy policies. The sponsors will present the packages to the PJM Board of Managers June 30.
Wednesday’s Critical Issue Fast Path MOPR session was the group’s eighth meeting and the last opportunity for stakeholders to openly discuss the proposals. (See PJM MOPR Reform Talks Start)
When stakeholders meet next, it will be for sponsors to present their proposals to the Board. Stakeholders who register to speak in advance will also be able to address the Board. The CIFP process, as defined in PJM Manual 34, calls for limited participation in the final meeting with the Board. The meeting will not be open to the media.
That meeting will be followed by a special session of the Members Committee in the afternoon, during which Members will vote on each of the nine packages. This feedback will serve as advisory to the Board, which ultimately will decide what proposal to file with the Federal Energy Regulatory Commission.
The Board is expected to direct PJM to file with FERC by July 16, but not without first providing feedback to Members and stakeholders about its decision.
In addition to PJM (PDF), proposals are being sponsored by:
- American Municipal Power (PDF)
- Calpine (PDF)
- Delaware Division of the Public Advocate (PDF)
- E-Cubed Policy Associates (PDF)
- Exelon (PDF)
- LS Power (PDF)
- Monitoring Analytics, the Independent Market Monitor (PDF)
- PSEG (PDF)
Sponsors must submit their final packages to PJM by noon June 23.
This is the first time the PJM Board has employed the CIFP process, an alternative to the normal stakeholder process designed to expeditiously resolve issues that are contentious or time-sensitive.
The goal of the process in this case is to file proposed modifications with FERC in time to effect changes for the 2023/2024 Delivery Year Base Residual Auction, to be held in December 2021.
The Board has issued guiding principles meant to inform stakeholder action, stating that any final proposal should:
- Function to help support reliability
- Respect and accommodate state resource preferences and facilitate competitive, least-cost procurement of these policy choices
- Be flexible in design, thus ensuring the long-term viability of the market
- Embrace competitive principles and send appropriate price signals for efficient entry and exit
- Ensure appropriate mitigation of market power
In addition to these principles, and consistent with the problem statement, an objective of PJM’s is to accommodate self-supply business models. PJM continues to hold Capacity Market Workshops to address capacity market issues unrelated to the MOPR.