Shell Energy North America continued to raise concerns with any implementation of PJM capacity performance market changes without an opportunity for market participants to fully know and adjust to the to-be adopted design.

In supplemental comments at FERC, Shell Energy said, "Shell Energy believes there are multiple market participants that will be exposed to significant commercial risk by an 'overnight' imposition of a wholly new regime whose specifics are not known today and will not effectively be known until FERC (and PJM) explain what they are."

"As Shell Energy stated in its Comments, it does not oppose the establishment of a Capacity Performance Product in PJM. What Shell Energy does oppose is an outcome that will cause it commercial injury due to the need for it to understand, assimilate and adapt to a wholly new regime without a fair opportunity to do so. As noted above, that outcome will not be fully known until sometime after the Commission’s initial order in this proceeding," Shell said.

"Simply stated, a change of this magnitude requires a thorough and comprehensive rollout. Market participants should not be playing catch-up or be surprised by how aspects of the regime are implemented. Once fully informed as to the program to be implemented, a fair opportunity to assimilate the program into their businesses should be provided. The Commission has typically followed such a path in its regulation. PJM has also historically been mindful of the need to provide market participants adequate opportunity to assimilate a material market change. There is no reason the Capacity Performance Product integration should be conducted in a less deliberate or less responsible manner than other material changes," Shell said.

"Accordingly, Shell Energy respectfully requests that the Commission: (1) require that all aspects of the Capacity Performance Proposal and the manner in which it will be implemented by PJM are made clear, including any revisions resulting from the Commission’s review of the filing, before it is implemented, and (2) to assist in providing clarity, convene a technical conference where all relevant issues including any changes made by the Commission can be addressed (possibly in conjunction with a compliance filing) in which PJM and the IMM will make a detailed presentation to market participants, the Commission, and its staff setting forth all relevant details of the program and its implementation and answer questions on the record regarding it," Shell said.

"Shell Energy is aware of no reason that something of the magnitude of the proposed Capacity Performance Product regime cannot have all aspects of the proposal be made fully clear to market participants and market participants be provided adequate time to assimilate them prior to implementation. Shell Energy stands ready to work with PJM and other market participants to accomplish this so that bi-lateral markets can effectively assimilate these changes without material disruption," Shell said.

Docket No. EL15-29