Updated: PUC Grants Extension For EDCs To File Plans For Simultaneous Dual Auctions For Default Service

(Earlier): Ohio Utilities Seek Extension In Deadline For Filing Plans For Simultaneous Dual Auctions For Default Service (Full Requirements Auction Versus Separate Energy Plus Capacity Hedge Procurement)

EDCs Note That FERC May Set Schedule For PJM Capacity Auction At Meeting Next Week

October 12, 2020

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Reporting by Paul Ring • ring@energychoicematters.com

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Update, 10/12:

An attorney examiner at the Public Utilities Commission of Ohio granted, with modifications, an extension for the electric distribution utilities (EDUs) to file the dual SSO auction plans as discussed in our earlier story below

The attorney examiner established that the EDUs shall file their dual SSO auction plans within 14 days of a PUCO ruling on rehearing requests concerning the dual auction directive

"Upon review of the EDU’s [sic] joint motion, the attorney examiner finds the EDUs request for an extension to file their dual auction plans in accordance with the July 15, 2020 Finding and Order’s directive in Paragraph 35(b) reasonable and grants the motion, though the attorney examiner believes the extension timeline presented should be slightly altered. First, however, the attorney examiner notes that, even if a ruling by FERC on the compliance filings in the foregoing case is imminent, there is no guarantee that the implementation of such decision will not be significantly delayed by potential appeals. Nevertheless, to provide ample time for the Commission to issue its substantive ruling on the applications for rehearing and to give EDUs sufficient time to formulate their plans in response, the attorney examiner directs the EDUs to file their dual auction plans within 14 days of the Commission issuing its Second Entry on Rehearing in this matter," the attorney examiner ruled

Earlier (10/9):

AEP Ohio, Duke Energy Ohio, the FirstEnergy Ohio utilities, and Dayton Power & Light (the EDCs) asked the Public Utilities Commission of Ohio for a 30-day extension of the Commission’s deadline which requires the EDCs to file plans to conduct simultaneous "dual auctions" for Standard Service Offer supplies, as the EDCs cited pending rehearing requests and a potential FERC order next week setting dates for the currently suspended PJM Base Residual Auctions for capacity.

As first reported by EnergyChoiceMatters.com, due to the ongoing lack of a forward capacity price in PJM beyond May 2022, PUCO had directed the EDCs to submit plans to conduct the following simultaneous auctions for SSO service, covering a period of four years commencing with the June 2022 delivery year, with PUCO then evaluating the results of each separate auction:

i. A full requirements product with a proxy price, using the June 2021 capacity price as the proxy, subject to true-up and reconciliation;

ii. An energy-only auction and a capacity-only hedge product. Suppliers will offer capacity hedge at a fixed price for all years included in the auction product, thereby guaranteeing the capacity price to be paid by consumers over the long-term.

The current deadline for the EDCs to submit such dual auction plans is currently October 13, 2020. The EDCs are seeking an extension until November 12, 2020 to submit the plans

As previously reported, the EDCs filed various requests for rehearing of the order, alleging, among other things, that PUCO's prescriptive direction in the order intruded on the utilities' statutory ability to consider various other methods of procuring SSO supply (including bilateral contracts and constructing new generation). The EDCs also sought various clarifications

Such rehearing requests remain pending

"The Commission has not ruled on the substance of the electric distribution utilities’ applications for rehearing, or provided the clarifications requested by AEP Ohio and the FirstEnergy companies. Addressing all of the issues raised in the pending applications for rehearing will greatly assist the electric distribution utilities to fully understand the Finding and Order and develop their dual auction plans in the best interests of customers. In order to give the Commission ample time to rule on the pending applications and, if the Commission denies or partially denies those applications, to give the electric utilities sufficient time to complete their plans, the electric distribution utilities respectfully request that the Commission extend the deadline for submitting the dual auction plans by 30 days, or until November 12, 2020," the EDCs said

"An extension may also resolve the uncertainty surrounding PJM’s BRA that prompted the Commission’s July 15, 2020 Finding and Order," the EDCs said

"[T]he uncertainty regarding PJM’s BRA may soon be resolved. The electric distribution utilities have heard that FERC is expected to rule on the scheduling of the next BRA in the next few weeks, possibly as early as October 15. If FERC issues its order as expected, the electric distribution utilities’ dual auction plans may be moot," the EDCs said in an October 8 filing

Indeed, FERC's current agenda for its October 15 meeting, posted on October 8, does include the dockets addressing PJM capacity market issues including the schedule for the BRA (FERC Docket EL16-49 et al.)

PUCO Case No. 16-776-EL-UNC et al.

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