LS Power asked FERC on Friday to block Dominion Energy from opting out of PJM’s May 19 capacity auction, saying the RTO violated its rules by accepting the utility’s fixed resource requirement (FRR) election (EL21-72).
PJM’s Reliability Assurance Agreement (RAA) requires that load-serving entities choosing the FRR must exit the capacity auction for at least five years and demonstrate the “commitment of capacity resources for the term of such election sufficient to meet such party’s daily unforced capacity obligation.”
But LS Power said it was informed by PJM that the RTO has been approving FRR alternative elections based on capacity plans covering just the first delivery year of the elections.
Dominion Energy Virginia confirmed last week it would not participate in PJM’s upcoming Base Residual Auction for 2022/23 over concerns the minimum offer price rule (MOPR) will undermine its ability to meet Virginia’s ambitious renewable energy targets. More than 60 Dominion generating units totaling more than 18.1 GW were included on PJM’s posting of FRR units on April 23. (See related story, Dominion Opts out of PJM Capacity Auction.)
“The reference to ‘2022/2023 FRR Capacity Plans’ in the caption of the FRR Resources List implies that, notwithstanding the requirements of the RAA, these FRR capacity plans covered just the 2022/2023 delivery year,” LS Power said in its complaint. “Complainants have confirmed that this is the case through communications with PJM.”
LS Power’s complaint, filed on behalf of the company and its 1,165-MW Doswell natural gas-fired generator, asks the commission to rule by May 17 and invalidate any FRR elections that did not demonstrate sufficient capacity for the entire five-year term.
LS Power said Dominion’s withdrawal from the BRA will suppress prices, harming Doswell’s revenues. “With the deadline for submitting FRR capacity plans having passed and the 2022/2023 BRA approaching rapidly, the only acceptable remedy here is to invalidate FRR alternative elections that were not supported by compliant FRR capacity plans,” it said.
“PJM’s willingness to bend the rules regarding FRR Capacity Plans is irreconcilable with its strict application of the filed rate in other circumstances,” LS Power continued. “PJM’s preferential treatment of Dominion and other LSEs implicates not only the filed rate doctrine; its actions also implicate the statutory prohibition against undue discrimination, because, as the commission has long held, even when an RTO/ISO ‘has discretion, it must exercise that discretion in a not unduly discriminatory manner.’”
PJM spokeswoman Susan Buehler said the RTO is preparing its response to the complaint, which is due Friday. “We believe our tariff and manual provide a solid legal foundation for approval of FRR capacity plans on a delivery year basis,” she said.
Dominion spokesman Rayhan Daudani said the company is aware of the filing but had no comment.
