PUC Stays Requirement For Utilities To Modify Default Service Procurements To Hold "Dual Auctions" (Separate Energy & Capacity Procurements)

The Public Utilities Commission of Ohio "indefinitely" stayed a prior order that the electricity utilities shall modify their Standard Service Offer (SSO) procurement process to hold "dual auctions" due to prior uncertainty in the PJM capacity market

As previously reported, due to the delay in several PJM capacity auctions, PUCO had directed the utilities to both:

(1) hold their traditional full requirements auctions with a proxy price for capacity,

(2) conduct an energy-only auction and a capacity-only hedge product.

PUCO would then have compared the two auction results in approving the procurements

See our prior story for further details on the dual SSO auctions

With a schedule for the resumption of PJM's base residual capacity auctions (BRA) now set, PUCO indefinitely stayed the prior order to hold the dual SSO auctions

PUCO directed the utilities to file, within 60 days, new schedules to conduct their traditional full requirements* SSO auctions based on the updated BRA schedule, "consistent with the provisions for staggering and laddering auctions contained in the ESPs [electric security plans]." (*Such auctions are generally 'full requirements' insofar as they include energy and capacity, though they may not necessarily include renewable compliance)

"Nonetheless, if these new developments regarding the capacity auctions are negatively impacted by ongoing litigation in the Federal Court of Appeals, the Commission may reconsider the stay and require the filing of dual auction plans," PUCO said

PUCO otherwise broadly denied rehearing of its prior dual auction order

Case 16-776-EL-UNC, 17-957-EL-UNC, 17-2391-EL-UNC, 18-6000-EL-UNC