News Archive Article

PJM warns FERC against tweaking RPM

PITTSBURGH, PENNSYLVANIA - PJM doesn't want to see the performance of its Reliability Pricing Model (RPM) capacity market move to a FERC technical conference that a group of buyers in the market asked the commission to set up.

The RTO is doing its own evaluation of the RPM - an independent consultant was hired to study it - and the RTO wants to take more time than the RPM buyers would have FERC spend, said PJM.

The RPM buyers include over 20 state commissions, consumers' counsels, Duquesne Light, co-ops and a group of federal agencies. They want FERC to take a hard look at the RPM markets that they say have deviated substantially from buyer's projections and PJM's simulations.

Consumers through 2011 will have to pay an extra $26 billion in costs without the benefit of significant capacity additions.

The four auctions held thus far haven't had the three-years of planning envisioned in the RPM - and that will only happen at the next auction, said PJM.

That auction will mark the first reasonable chance for new entry to meaningfully take part and should be looked at in any review of the RPM's performance.

The market has only been in place one-year and rushing to an immediate technical conference then to get new rules in place by June 1 isn't enough time, said the RTO.

Any changes to RPM structure will likely be highly contested and making those decisions hastily would only hurt the decision-making process at FERC and among stakeholders.

Market participants signed deals for capacity in the 2008 to 2009 delivery year that starts June 1 and changing the market at this point would only raise equity concerns, damage the credibility of FERC decisions on market rules and adversely affect long-term reliability, said PJM.

Related News

pickering ngs

Time running out for Ontario to formally request Pickering nuclear power station extension

TORONTO - Ontario’s electricity generator has yet to file an official application to extend the life of the Pickering nuclear power plant, more than eight months after the Ford government announced it planned to give the plant a longer life.

As the province faces an electricity capacity crunch in 2025 and beyond, the Ford government scrambled to prolong the Pickering power plant until September 2026,  in order to guarantee a steady supply of power as the province experiences a rise in demand and shutdowns at other nuclear power plants.

The extension may come down to the wire, however, as the Canadian Nuclear…

READ MORE
ieso

New Electricity Auctions Will Drive Down Costs for Ontario's Consumers

READ MORE

hvdc

Project examines potential for Europe's power grid to increase HVDC Technology

READ MORE

Fixing California's electric grid is like repairing a car while driving

READ MORE

Hundreds of Canadian power crews are heading to Florida

Canadian power crews head to Irma-hit Florida to help restore service

READ MORE