Utilities Propose Changes To Default Service Auction Dates, Product Term Lengths To Reflect Revised PJM Capacity Auction Schedule -- EnergyChoiceMatters.com

Utilities Propose Changes To Default Service Auction Dates, Product Term Lengths To Reflect Revised PJM Capacity Auction Schedule

April 13, 2021

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Copyright 2010-21 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

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The FirstEnergy Ohio utilities (Ohio Edison Company, The Cleveland Electric Illuminating Company, and The Toledo Edison Company) have petitioned the Public Utilities Commission of Ohio for approval of revised Standard Service Offer auction dates, tranche quantities, and product term lengths to account for the revised schedule for various base residual auctions (BRA) in the PJM capacity market.

The FirstEnergy EDCs said, "The Companies’ proposed auction schedules are consistent with the timeframes established by PJM for future BRAs – including the May 2021 BRA for delivery year 2022/2023 and the December 2021 BRA for the delivery year 2023/2024. The proposed schedules are also consistent with staggering and laddering as set forth in the Companies’ ESP IV."

Specifically, the Companies propose to:

• Add an August 2021 auction to procure 33 tranches for a 12-month product for the period June 2022 – May 2023. This auction will compensate, in part, for the October 2020 and January 2021 auctions having been truncated to procure only 12-month products. Adding the August 2021 auction will allow the Companies to procure fewer tranches in the October 2021 auction, creating more diversity in the Companies’ supply portfolio. This auction will occur after the PJM BRA for the 2022/2023 delivery year, which is scheduled for May 2021 as noted above.
• Conduct an October 2021 auction, as scheduled, but procure all 33 tranches through a 12-month product for the period June 2022 – May 2023 and not procure 17 of the 33 tranches through a 24-month product for the period June 2022 – May 2024. The procurement of the originally planned 24-month product will not be possible, as the BRA for delivery year 2023/2024 is not scheduled to be conducted by PJM until December 2021.
• Conduct a January 2022 auction, as scheduled, but procure 34 tranches of a 24- month product for the period June 2022 – May 2024 and not procure 16 tranches through a 12-month product for the period June 2022 – May 2023. This adjustment is necessary to compensate, in part, for the October 2020 and January 2021 auctions having been truncated to procure only 12-month products.
• Conduct an October 2022 auction, as scheduled, but procure 33 tranches of a 12- month product for the period June 2023 – May 2024, rather than 16 tranches of a 12-month product covering the same period. This adjustment is necessary to compensate, in part, for the truncated October 2020 and January 2021 auctions.
• Conduct a January 2023 auction, as scheduled, but procure 33 tranches of a 12- month product for the period June 2023 – May 2024, rather than 16 tranches of a 12-month product covering the same period. This adjustment is necessary to compensate, in part, for the truncated portions of the October 2020 and January 2021 auctions.

A chart of the revised auction products and schedule can be found here on page 6

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