PJM’s Base Residual Auction (BRA) seeks to procure capacity resources to meet the electricity needs of PJM three years in advance of when they are needed (delivery year). However, since May of 2019, that typical three-year window has been lost as auctions have been postponed in response to FERC orders concerning changes to PJM’s market structure.
The most recent auction, held in May 2021, covered delivery year 2022/2023. Originally scheduled for May 2019, it was postponed while FERC considered changes to the Minimum Offer Price Rules.
The most recent delays to the 2023/2024 delivery year auction allowed for PJM to make changes under the revised Market Seller Offer Cap (MSOC) rules, which FERC determined were unjust and unreasonable on September 2, 2021. This resulted in PJM pushing the auction back from its scheduled date of December 1, 2021 to January 25, 2022. Then in response to FERCs December 22, 2021 order on the voluntary remand of its May 2020 reserve-pricing order, PJM proposed a new auction schedule to FERC. This pushed back the next auction from January 25, 2022 to June 8, 2022.
The revised auction schedule will not only delay the most recent auction but will also delay all other upcoming capacity auctions by about 4.5 months. PJM is working to return to the normal three-year forward auction. It should be back on track, starting with the capacity auction for the 2027/2028 delivery year, scheduled for May 2024.
Below is the proposed revised auction schedule:
2023/2024 Delivery Year – Moved from January 2022 to June 2022
2024/2025 Delivery Year – Moved from August 2022 to December 2022
2025/2026 Delivery Year – Moved from February 2023 to June 2023
2026/2027 Delivery Year – Moved from August 2023 to November 2023
2027/2028 Delivery Year* – Scheduled for May 2024