Retail Supplier Parents, Brokers, Pa. PUC Among Those Requesting That PJM Capacity Auction Schedule Be Resumed "As Quickly As Possible"

An ad hoc group of stakeholders identifying itself as the "the Competitive Markets Coalition", which includes several integrated generation and retail energy supply companies as well as a representative of brokers, urged FERC to act expeditiously on a PJM minimum offer price rule (MOPR) capacity market compliance filing, such that the cycle of capacity market auctions can be restored, "as quickly as possible."

Among the signatories to the letter were NRG Energy and several of its retail suppliers, Vistra Energy, Calpine, Talen Energy, the Energy Professionals of Ohio (EPO), and the Pennsylvania Public Utility Commission, along with other generation owners and other stakeholders

The coalition said that, "While members of the Competitive Markets Coalition have different views of the December 19 FERC Order, PJM’s March 18th compliance filing and different perspectives on capacity markets in general, we are united in the belief that the cycle of capacity market auctions needs to be restored as quickly as possible. The auction delays that have occurred to date have caused disruptions to the market certainty that is essential to PJM’s and its members’ success."

"PJM has not conducted a Base Residual Auction since May of 2018. The lack of clarity into future market pricing has harmed capacity suppliers who need to make important decisions related to investments in new capacity, construction of new capacity and retirements of existing capacity. Similarly, consumers currently have a constrained view of forward market conditions that is impairing their ability to enter commercial arrangements or invest in demand response or energy efficiency. PJM has said clearly and appropriately that they cannot schedule an auction until the Commission has issued an order on compliance. Unresolved rehearing requests will also leave a legal shadow over the December 19th order, with similar effects. Accordingly, we urge the Commission to draw the compliance and rehearing process to a conclusion as quickly as possible," the coalition said

Dockets EL16-49-000 and EL18-178-000