PJM will engage stakeholders in a series of meetings
before submitting by June 1 a second compliance filing addressing its capacity
market price rules, as directed by the Federal Energy Regulatory Commission
(FERC).
In response to several requests for a rehearing and
clarification of certain elements of FERC’s December order, which expanded the Minimum
Offer Pricing Rule (MOPR) used in the PJM capacity auction, on April 16 FERC largely
affirmed its order,
but provided some clarifications.
The December order significantly expanded the application
of the MOPR, which had previously only applied to new natural gas-fired
resources.
Prior to submitting its initial
compliance filing on March 18, PJM heard from every
stakeholder sector, conducting nine formal stakeholder meetings to discuss the
filing and surrounding issues.
PJM Seeks Input
Similarly, PJM is actively seeking to understand the
impact of the FERC order on its stakeholders as it prepares its second
compliance filing.
In a presentation
to the Markets & Reliability Committee on April 30, Lisa Morelli, Director
– Capacity, Demand Response & Compliance, shared PJM’s next steps, starting
with a May 6 special session of the Market Implementation Committee, 10 a.m. to
noon.
This will be followed by a dedicated discussion at the May 13 meeting of the Market Implementation Committee and a subsequent information session tentatively scheduled for May 28.
Two Points of Particular Interest
PJM is particularly interested in hearing from
stakeholders about the effects of the following points of the order:
- State default service procurements being
captured by the definition of “state subsidy” - Public power self-supply entities engaging
in voluntary, arms-length bilateral contracts with unaffiliated third parties
triggering the MOPR
In her update, Morelli highlighted several impacts of
the FERC order, including on MOPR floor prices, classification of new versus
existing capacity resources, and transactions.
Morelli said a large majority of PJM’s March
compliance filing stands, and that the new compliance filing will address
particular aspects of the recent FERC order.
PJM still proposes to run the 2022/2023 Delivery Year
auction approximately six months after FERC approves its compliance filings.
PJM would be able to run subsequent auctions with as
little as six months in between to help maintain an orderly process for each
auction while working to return to a normal auction schedule.
Original source: PJM