PJM Says Third Incremental Auction Results Are Final, Absent Action From Governmental Authority
PJM has issued a further market notice concerning the matter of a Market Participant who had informed PJM of an alleged error in the initial posting of auction results for the Third Incremental Reliability Pricing Model Auction for the 2019/2020 Delivery Year
As previously reported, PJM said in a March 14 market notice that, "A Market Participant has informed PJM of an alleged error in the initial posting of auction results for the Third Incremental Reliability Pricing Model Auction for the 2019/2020 Delivery Year. Specifically, the Market Participant has informed PJM that it cleared more than 2,000 MW of buy bids in excess of its intended quantity without the legal authority to execute such transactions. While this does not constitute an error in the clearing of the auction pursuant to Tariff, Attachment DD, section 5.11(e), given the unique circumstances of this case, PJM is providing this notice given the potential for Governmental Authority intervention."
PJM issued a further notice on March 15 stating, "Several stakeholders have contacted PJM requesting additional information related to the below notice. PJM provided notice along the timeline specified in the Tariff, even though (as we indicated) the situation does not involve a PJM error in clearing the auction. We will post further information along the Tariff specified timeline, which is the 7th business day after the auction clearing, or Tuesday, March 19th. We cannot specify the Governmental Authority reference due to confidentiality concerns."
In a March 19 market notice, PJM stated, "With respect to the below notification regarding the initially posted results of the 3rd Incremental Auction for the 2019/2020 Delivery Year, PJM is notifying market participants that PJM does not have the authority to post modified results based upon the Market Participant’s alleged error pursuant to Tariff, Attachment DD, section 5.11(e). Therefore, absent an action on the part of a Governmental Authority directing PJM otherwise with respect to the Market Participant’s alleged error, these auction results are final. PJM will inform stakeholders of any such actions by any Governmental Authority."