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Another Utility Seeks To Modify Default Service Procurement Products Due To PJM Capacity Market Uncertainty
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Dayton Power & Light sought approval from the Public Utilities Commission of Ohio to replace a 36-month contract it would otherwise procure in an upcoming March 2020 Standard Service Offer auction with a 24-month product due to the lack of a base residual auction capacity price in PJM beyond May 31, 2022.
"Consistent with years past, DP&L’s CBP auction typically includes 12, 24, and 36-month
products. These recent events between the FERC and PJM, however, have caused complications
for EDUs when conducting their SSO competitive bid auctions. Specifically, the 36-month
product extends through May 31, 2023, and as of now, there is still no certainty on the applicable
capacity rate for the 2022/2023 delivery year. Therefore, including a 36-month product in
DP&L’s competitive bid will inevitably increase the amount of inherited risk for all parties
involved and may cause prices to be unusually high for the final 12 months. In the interest of
maintaining beneficial and stable rates for its customers, DP&L proposes to eliminate the 36-month product and only offer the 12 and 24-month products in its upcoming March 2020 auction
in order to alleviate the uncertainty brought about by the December FERC order," DP&L said
DP&L noted that PUCO granted similar relief to Duke Energy Ohio in a fall 2019 procurement
"Based on the uncertainty of the PJM applicable rate for the 2022-23 delivery year and
previous findings by the Commission, DP&L respectfully requests that the Commission approve
its request to offer a 24-month product, temporarily eliminating the 36-month product in the
interest of consistency with other Ohio EDUs and to the benefit of customers," DP&L said
Case No. 17-957-EL-UNC
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February 10, 2020
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Copyright 2010-20 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
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