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PJM Seeks Delay in Upcoming Base Residual Auction For Capacity

April 7, 2015

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Copyright 2010-15 EnergyChoiceMatters.com
Reporting by Karen Abbott • kabbott@energychoicematters.com

Citing uncertainty at FERC, PJM has requested authorization to delay its upcoming Base Residual Auction for capacity, otherwise scheduled for May, to no later than the week of August 10-14, 2015.

PJM said that FERC's notice of deficiency regarding PJM's proposed tariff changes to implement its capacity performance mechanism, instead seeking more information on that filing, "has engendered considerable uncertainty over whether an opportunity to apply the proposed Capacity Performance rules to the 2015 BRA can and should be preserved."

"This filing is designed to squarely present, and precipitate prompt resolution of, that important question, by requesting authority to delay the 2015 BRA from May 11-15, 2015 to a week that is 30 to 75 days after a Commission order on the merits of PJM's response to the March 31 Deficiency Letter, but no later than the week of August 10-14, 2015," PJM said

PJM asked the Commission to act on its request by no later than April 24, 2015, i.e., ten working days before the currently scheduled opening of the BRA

"To leave no doubt as to the importance of market certainty by that deadline, PJM hereby advises the Commission and all interested stakeholders that this waiver request is time-limited and should be deemed withdrawn if the Commission has not acted on it by April 24, 2015," PJM said.

Additionally, PJM said that if the Commission believes that the capacity performance proposal is not capable of timely resolution by mid-June 2015 based on the current record and PJM's soon-to-be-filed responses to the March 31 deficiency letter, then FERC should deny the requested delay and avoid creating uncertainty at a future point in time.

PJM said in its filing that, "developers of new entry projects have come to rely on the current BRA schedule, and some generation project sponsors have made clear to PJM that a delay could impact the costs and construction schedule of certain planned units for which they structured their financing and schedules around receiving the results of the 2015 BRA in May," but nevertheless said that a delay is justified given the "critical" need for implementation of capacity performance requirements

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