PJM capacity market auction could be delayed another year, uncertainty persists
New York — As PJM Interconnection market participants unpack the Federal Energy Regulatory Commission’s long-awaited capacity market order, it is looking increasingly likely that regulatory work will necessitate putting off base capacity auctions in the region for another year. Stakeholders and PJM indicated Wednesday they would seek clarification on several aspects of the order and at least one market participant advocates seeking a compliance filing deadline extension.
“There are likely scenarios and business decisions out there that we don’t know exist,” Adam Keech, PJM’s vice president of market operations, said during a Market Implementation Committee meeting.
Keech said the purpose of the meeting was to gather feedback from stakeholders that would help PJM craft its compliance filing in response to FERC’s December, 2019, capacity market order (EL18-178) aimed at addressing the price suppressive impacts of subsidized resource participation in the market.
Keech noted the considerable changes between what the grid operator proposed and FERC’s final order, including a widened definition of what encompasses a state subsidy and a narrower set of exemptions from the minimum offer price rule that sets a default floor price for certain generation resources to clear capacity market auctions.
Keech said some of the many legitimate stakeholder questions may need to be handled with requests for clarification or rehearing filed to FERC. Rehearing requests are due by January 21, and PJM’s compliance filing is due March 18.
Keech added that PJM would be filing for rehearing as well, but declined to expand upon which issues the grid operator planned to ask FERC to reconsider. With no statutory obligations on when FERC must act on rehearing requests, some stakeholders expressed concerns regarding what protracted regulatory proceedings would mean for scheduling the next capacity auction.