Utilities Seek Delay In Default Service Auction
March 27, 2020 Email This Story Copyright 2010-20 EnergyChoiceMatters.com
Reporting by Paul Ring • email@example.com
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The Maryland electric utilities have petitioned the PSC to delay a scheduled April 2020 SOS procurement to a previously contemplated alternative date, in light of pending potential changes to the SOS product due to delays in the PJM capacity auction, and the current circumstances surrounding COVID-19
The Tranche 3 SOS procurement was originally set to be held on April 13, 2020.
As previously reported, Staff has presented revisions to the SOS agreements to use a 'proxy price' for the time period in the SOS contracts that lack capacity price transparency (due to delayed PJM auctions) at the time of the SOS auctions. Wholesale SOS suppliers would receive (or pay) a true up to the actual price once it is known. The proposed changes remain pending before the PSC
"Given the current circumstances surrounding COVID-19 (including Maryland Governor Hogan’s Declaration of State of Emergency) and the fact that the Commission has not yet reached a decision on the Supplemental PIP [Procurement Improvement Process] filed by Staff," Baltimore Gas and Electric Company, Potomac Electric Power Company, Delmarva Power & Light Company, and The Potomac Edison Company (the Joint Utilities) propose the following:
• Tranche 3 procurement be held on the alternative date - Monday, April 27, 2020. "Delaying the auction will allow time to organize the needed logistics of conducting a remote auction," the EDCs said
• The Tranche 3 procurement be administered remotely. Regarding the assessment of the offers, the Commission’s bid monitor, will continue to perform their normal oversight duties and will have full access to the joint utilities’ auction platforms in real-time to verify the offers, winners, and any other information necessary to conduct their traditional briefing with the Commission
• Skype, Teams, or a similar teleconference system be utilized to allow all stakeholders to collaborate in an open setting during the auction bidding window.
The Joint Utilities have discussed their proposal with Staff and the monitor, who have both, according to the EDCs indicated their support