Pennsylvania Gov. Josh Shapiro has reached an agreement with PJM Interconnection tied to PJM’s capacity auctions.
In December, the state of Pennsylvania and Shapiro filed a complaint against the PJM Interconnection at the Federal Energy Regulatory Commission tied to PJM’s capacity auctions.
The complaint alleged that flaws in PJM’s capacity auction design threaten to impose significant new price increases. “Pennsylvania ratepayers face potentially the largest unjust wealth transfer in the history of U.S. energy markets due to PJM Interconnection LLC’s capacity auctions,” the complaint asserts.
Shapiro’s office said the Governor worked with PJM “to significantly lower the capacity auction price cap -- from over $500/Megawatt-Day to $325/MW-Day.”
PJM and the Shapiro Administration “have agreed to a path forward for the complaint, subject to consultation with PJM members and the PJM Board of Managers,” Shapiro’s office said in a Jan. 28 news release.
In order to avoid further delays to the auction schedule, PJM will soon seek a FERC order by proposing a cap and floor mechanism through an FPA section 205 filing with the FERC, Shapiro’s office said.
