PJM Set To Hold Capacity Auction In June After Receiving Mixed FERC Decisions | Capacity News
February 12, 2024 | News
PJM’s 2025/2026 Base Residual Auction is set to open June 12 and close June 18, with results slated to be posted June 25, the grid operator said. The schedule for pre-auction activities remains unchanged.
The announcement follows FERC’s Feb. 6 decision to reject a PJM proposal to revamp its offer cap and capacity performance rules and an earlier decision to approve a companion “modeling enhancement” plan that revises its resource adequacy risk modeling and capacity accreditation processes and bolsters its testing requirements for capacity resources.
Scott Niemann, Managing Director & Principal at ESAI Power, said the FERC-approved changes will likely put upward pressure on capacity prices in most parts of PJM. Driven by pending power plant retirements, prices in PJM’s Southwest MAAC zone — comprising Baltimore Gas and Electric and Pepco’s service territories — could break higher than the overall regional transmission organization.