PJM and stakeholders reviewed updated proposals at the Capacity Construct/Public Policy Senior Task Force meeting on Oct. 16.
Some stakeholders suggested that the task force should slow down its work in light of the Department of Energy’s letter and notice of proposed rule making to the Federal Energy Regulatory Commission on Sept. 29. That directive requires the FERC to consider directing competitive wholesale power markets to “ensure that certain reliability and resiliency attributes of electric generation resources are fully valued.”
The proposal aims at cost-of-service plus a return on investment for nuclear and coal-fired generation. Comments are due to the FERC on Oct. 23.
Stu Bresler, executive vice president – Operations and Markets, cautioned that the uncertainty is one of the reasons that PJM wants to continue working with stakeholders on crafting a proposal. He acknowledged stakeholder concerns that things are moving quickly and that the DOE action adds uncertainty.
Nonetheless, PJM wants to be prepared in drafting a capacity construct proposal so it can be ready for the Base Residual Auction in May. He said PJM would like to build further consensus with stakeholders over the next several weeks.
The next task force meeting is scheduled on Nov. 1. Stakeholders are working toward reviewing proposals at the Markets & Reliability Meeting on Dec. 7.
On Thursday, PJM will hold a special MRC meeting to discuss with stakeholders the FERC questions on the DOE directive.
Proposals and their updates: