The Members Committee and MRC approved changes on Feb. 28 to provide new capacity resources with a mechanism to avoid clearing the capacity auction for one year if they require multi-year price assurance to be a viable project.

Reason for change: New capacity resources currently are guaranteed only one year’s price guarantee – known as New Entry Price Adjustment (NEPA).

Impact: The Members Committee and MRC approved changing two sentences in the Tariff.

New capacity resources seeking the three-year price guarantee must declare their intentions when bidding in the first year and specify whether their offers are contingent upon qualifying for the price adjustment.  Such sell offers will not clear the auction if they don’t qualify for NEPA treatment.

Part of a bigger package of changes being developed by the Capacity Senior Task Force, this change will take effect in time for the May capacity auction. The task force will consider whether additional changes are needed after reviewing results of the May auction.

PJM Contact: Sarah Burlew