FERC Approves Delay In PJM Capacity Auctions, Sets Schedule

FERC approved PJM's tariff filing to delay the Reliability Pricing Model (RPM or capacity market) Base Residual Auction (BRA) and Incremental Auction schedules for the 2025/2026 through the 2028/2029 delivery years

PJM had proposed revisions to the Tariff to allow all capacity auctions beginning with the 2025/2026 delivery year through the 2028/2029 delivery year to be conducted after Commission action on PJM’s anticipated upcoming capacity market enhancements filing, which PJM states is currently scheduled to be filed by October 1, 2023

FERC said, "We find that the potential scope and magnitude of the capacity market related reforms PJM is considering in its stakeholder process provide sufficient justification under FPA section 205 to delay the auctions until after the Commission has an opportunity to act on any proposals that PJM may file following that stakeholder process. In particular, the reforms contemplated in PJM’s stakeholder process mean that market participants would be participating in auctions in the face of significant uncertainty regarding critical rules governing their capacity supply obligations in the relevant delivery year, such as the penalty structure. We find the extent of that uncertainty sufficient to carry PJM’s burden under FPA section 205 to justify the proposed changes to the auction dates."

While PJM had not proposed specific future auction dates due to the uncertain timing of ultimate adjudication of the capacity reform proposal, FERC found that a future schedule should be set, and ordered that an "illustrative" schedule offered by PJM instead be codified in the tariff. FERC noted that PJM may seek similar delays in the future if needed

The schedule adopted by FERC sets the BRAs as follows:

Delivery Year   BRA Date
2025/2026       June 2024 
2026/2027       December 2024  
2027/2028       June 2025 
2028/2029       December 2025  
2029/2030       May 2026 (back on typical schedule)

Docket No. ER23-1609-000