Several Mid-Atlantic consumer advocates filed at FERC complaint seeking a determination that the current market seller offer cap (“MSOC”) that PJM Interconnection, LLC (“PJM”) uses in its Reliability Price Model (“RPM”) Base Residual Auction (“BRA”) is unjust and unreasonable

The joint advocates asked that FERC direct PJM and its stakeholders to revise the methodology used for calculating the MSOC to ensure a competitive auction during the next BRA. Advocates suggested reducing the MSOC to the level of recent rolling average RTO clearing price

The advocates said that the MSOC allows offers to be submitted above competitive levels, citing a recent IMM report that, “identified noncompetitive offers that had a significant impact on the 2021/2022 RPM Base Residual Auction results”

"Capacity overpricing is not due to the actions of a few bad actors but is instead the inevitable result of a bad methodology," the advocates said

See the complaint for more details

Tags:
PJM   Capacity market  

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