PJM states, generators clash over auction deadline

Source: BY KELSEY TAMBORRINO, Politico • Posted: Monday, May 18, 2020

States and power producers are tussling FERC filings over the timing of the next PJM power capacity market auction, which the grid operator wants to run by March 2021 under FERC’s ruling that will limit subsidized renewable and nuclear energy. States want more time to pass legislation in their statehouses that would allow them to potentially withdraw from that portion of PJM’s power market, and they asked FERC for another year on the deadlines.

“Even in ordinary times, it would have been nearly impossible to comply with PJM’s proposed deadlines,” the New Jersey regulators argued in comments submitted to FERC, citing the delays caused by the pandemic. Maryland and Illinois are also considering leaving the long-term power market.

But power generators urged FERC to move faster and to mandate the auction be held by the end of this year. “The lack of certainty about when the [auction] will be conducted is, in fact, already negatively impacting investors and hindering investment,” the Electric Power Supply Association, a group of largely fossil fuel generators, wrote in its submitted comments.

FERC is expediting its work, but has indicated it won’t announce a decision on the case before June 1.