VALLEY FORGE, Pa., June 10, 2015 /PRNewswire/ -- PJM Interconnection received approval late Tuesday from the Federal Energy Regulatory Commission for its Capacity Performance proposal. With FERC's order, Capacity Performance can be incorporated into the annual capacity auction for the 2018-2019 delivery year. The auction will begin August 10.
"In approving PJM's Capacity Performance proposal, the Federal Energy Regulatory Commission has recognized the need to ensure better generator performance and fuel assurance," said PJM CEO and President Terry Boston.
"PJM is reviewing FERC's order to fully understand the impacts, but the order appears to largely support PJM's pay for performance model. As we move forward, we are committed to working closely with members and stakeholders to implement Capacity Performance to ensure reliable power supplies for the people in the region PJM serves," Boston said.
As required by the FERC order, PJM will make a compliance filing within 30 days while preparing for the annual Reliability Pricing Model capacity auction. The timeline of pre-auction deadlines and incremental auctions is posted on pjm.com.
The Capacity Performance proposal was developed through an expedited stakeholder process last year, driven in part by generator performance during the previous winter's Polar Vortex. On the coldest day of 2014, 22 percent of the generation in PJM was unavailable to serve customers.
Capacity Performance will enhance the incentives for capacity resources to be available when needed most, help reduce price spikes during system emergencies and reduce the chance of expensive forced outages. Capacity Performance provides clearly defined obligations for capacity resources and will enhance reliability at a reasonable cost.
PJM Interconnection, founded in 1927, ensures the reliability of the high-voltage electric power system serving 61 million people in all or parts of Delaware, Illinois, Indiana, Kentucky, Maryland, Michigan, New Jersey, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, West Virginia and the District of Columbia. PJM coordinates and directs the operation of the region's transmission grid, which includes 62,556 miles of transmission lines; administers a competitive wholesale electricity market; and plans regional transmission expansion improvements to maintain grid reliability and relieve congestion. Visit PJM at www.pjm.com.
SOURCE PJM Interconnection