By Rich Heidorn Jr.

The Federal Energy Regulatory Commission Friday granted PJM’s request to delay May’s Base Residual Auction, allowing the RTO more time to seek FERC approval for its Capacity Performance proposal.

“PJM’s request for waiver will allow the commission to consider the additional information submitted by PJM in support of its Capacity Performance proposal, as well as comments and protests regarding that additional information, while also providing clarity regarding the timing under which PJM will conduct its auction following commission action on that proposal,” the commission said.

PJM filed the request on April 7, after FERC issued a deficiency letter over the Capacity Performance plan (ER15-623). It sought a waiver from the Tariff requirement that the auction be held in May. It said it would hold the auction 30 to 75 days after a commission order on the merits of the proposal, but no later than the week of Aug. 10-14.

The proposed delay drew more than two dozen comments, mostly from supportive stakeholders, but also from critics who said a postponement would create more market uncertainty than it is seeking to quell. (See PJM Bid to Delay Capacity Auction Draws Flurry of Support, Criticism.)

In granting the delay, the commission ruled that PJM’s request was of limited scope, remedied a concrete problem and would not harm third parties (ER15-1470). (The commission later issued an errata to fix its incorrect reference to the in paragraphs 1 and 2, which should have referred to the 2018/19 delivery year.)

FERC acknowledged the delay would result in “some uncertainty.”

“We recognize that some protestors argue that delaying the auction will harm them by increasing their costs to participate in the auction. We acknowledge these concerns, but agree with PJM that it is important that the commission have the opportunity to consider the full record in the Capacity Performance proceeding prior to PJM running this year’s auction.”

The commission said PJM’s commitment to conduct the auction no later than mid-August mitigates the potential impacts on market participants, and noted that “any additional costs incurred by participating resources may be included in their capacity sell offers, to the extent permitted by the rules in place for the auction.”