PJM Set To Hold Capacity Auction In June After Receiving Mixed FERC Decisions | Capacity News
February 12, 2024 | News
Ethan Howland reports in Utility Dive that after receiving two key Federal Energy Regulatory Commission decisions, the PJM Interconnection plans to hold its next capacity auction in June.
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 February 6 decision to reject a PJM proposal to revamp its offer cap and capacity performance rules and an earlier decision, announced on January 30th, to approve a companion “modeling enhancement” plan to expand the Effective Load Carrying Capability (ELCC) 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.
