FERC Delays PJM Base Residual Capacity Auction

FERC granted PJM a waiver to delay its base residual capacity auction for the 2018-19 delivery year.

The auction, which by tariff shall be held in May 2015, under the waiver will now be held 30-75 days after the Commission issues an order on PJM's Capacity Performance proposal, but no later than the week of August 10-14, 2015.

"While some uncertainty is inevitable under these circumstances, we disagree with protesters that the possible impacts of delaying the auction warrant rejection of the waiver. That said, we recognize that some protestors argue that delaying the auction will harm them by increasing their costs to participate in the auction. We acknowledge these concerns, but agree with PJM that it is important that the Commission have the opportunity to consider the full record in the Capacity Performance proceeding prior to PJM running this year’s auction. Additionally, PJM has proposed to conduct the auction no later than mid- August, which mitigates the potential impacts on market participants, and we note that any additional costs incurred by participating resources may be included in their capacity sell offers, to the extent permitted by the rules in place for the auction," FERC said.