With PJM Capacity Auctions For 2022 And Later Still Delayed, Utility Suggests Change In Term Of Default Service Products Sought In Auction

With PJM's base residual capacity auction for the year 2022-23 still delayed, and the auction for 2023-24 likely to be delayed as well, Duke Energy Ohio has suggested to the Public Utilities Commission of Ohio further changes to its default service procurements

As previously reported, PUCO previously issued an order modifying Duke's September 2019 default service procurement, for service starting June 1, 2020, to replace the 36-month contracts (which were originally contemplated to be procured) with 24-month contracts. The change to a 24-month contract avoided procuring supplies related to the period starting June 1, 2022, for which the PJM base residual capacity price is not yet known

Duke suggested a similar change for its upcoming February 2020 default service auction

"[A]bsent a Commission-approved change to the current ESP auction, the anticipated February 2020 auction will likely be affected by the FERC’s directives as the May 2019 PJM capacity auction for the 2022/2023 delivery year has not yet occurred, and a schedule for this and future capacity auctions is not anticipated to be released until March 2020," Duke said

Duke noted that the uncertainties which prompted PUCO's prior change remain today and are likely to persist through most of 2020 until PJM holds its next BRA, the date of which is presently unknown.

"Duke Energy Ohio suggests that the Commission could, again, amend the upcoming February 2020 ESP auction to 17% of the load during the period from June 2020 to May 2022 (not 2023)," Duke said

"Once PJM releases its proposed auction schedule, it may be necessary to consider additional amendments to Duke Energy Ohio’s auction schedule," Duke said

"If desired by the Commission, Duke Energy Ohio will proceed pursuant to the ESP auction schedule previously approved in this proceeding, but the Commission may find that uncertainty as to the applicable PJM rate for a portion of the period covered by the February 2020 ESP auction warrants modifying the ESP auction schedule. Duke Energy Ohio welcomes guidance from the Commission on the most prudent course of action for the benefit of customers," Duke said