By Rory D. Sweeney
VALLEY FORGE, Pa. — PJM on Monday announced revisions to its capacity proposal while Dayton Power and Light said it was withdrawing its plan.
PJM told the Capacity Construct/Public Policy Senior Task Force (CCPPSTF) that it would eliminate the minimum offer price rule (MOPR) and include all units to which it currently applies in its new repricing structure.
“We would apply repricing as opposed to a MOPR approach,” said Stu Bresler, PJM’s senior vice president for operations and markets. He said existing MOPR exemptions would continue.
Bresler also announced two other changes to its proposal.
Any offers that trigger repricing would have their offer adjusted to the avoidable cost rate (ACR). PJM would maintain a table of default ACR values by resource class and location, but resource owners could submit unit-specific ACRs if preferred. “We heard loud and clear through the poll results that net CONE [cost of new entry] times B [as the adjusted offer] was not a popular approach,” Bresler said.
In addition, states’ option to direct PJM to pay adjusted resources less than restated capacity prices was removed. In the revised proposal, every cleared resource will receive the restated clearing price.
The number of proposals before the task force dropped by one when John Horstmann of Dayton Power and Light retracted his “capacity choice” proposal. That leaves eight options before the task force; Old Dominion Electric Cooperative had removed its repricing proposal from consideration in September.
There was no mention at the meeting of the Organization of PJM States Inc.’s Oct. 9 letter warning the PJM Board of Managers away from task proposals that OPSI said could raise prices significantly and restrict state public policies. (See related story, State Regulators Unhappy with PJM Capacity Discussions.)
But several proposers made revisions that appear to be keeping OPSI’s concerns in mind. American Municipal Power and LS Power updated their definitions for an “actionable” subsidy that expand upon the Independent Market Monitor’s definition for its extended MOPR proposal. The definitions identify exclusions for government-sponsored or -mandated procurement. The LS proposal specifically excludes renewables development and demand response programs.
The Monitor likewise added two exemptions to its MOPR proposal for public power and renewable portfolio standards.