- Sep 18, 2019 4:45 pm GMT
- 730 views
If you're not following the "debate" over PJM's capacity market then you're missing the equivalent of the "Rumble in the Jungle" playing out now for the heart and soul of capacity market design in PJM. Inside the ring we have Grid Strategies, a fiesty and capable newcomer, and Monitoring Analytics, the incumbent PJM market monitor (the defending champ if you will). Grid Strategies landed the first blow with a report indicating that prices would increase by $5.7 billion under a PJM scenario (RCO) outlined along with other scenarios. Voices from the crowd, PJM Power Providers Group President Glen Thomas and EPSA President and CEO Todd A. Snitchler, charged Grid Strategies with hitting below the belt by cherry picking their analysis. Monitoring Analytics counter punches with a response on 9/17 stating that the correct increase under the RCO scenario would be $8.4 billion, not the $5.7 billion cited by Grid Strategies, but followed up by stating that "IMM [Monitoring Analytics] agrees that the RCO proposal is badly designed and would result in substantial and inappropriate price increases to customers in the PJM capacity market. The RCO proposal was rejected in its earlier repricing proposal form by the Commission and should be rejected again". Proposing that Grid Strategies consider Monitoring Analytics Sustainable Market Rule (SMR) approach as a viable path forward.
In the meantime we wait to see what's going to happen at FERC in order to establish a quorum and provide some much needed direction to reach "a calming OASIS". Could 2020 be the year of reconciliation.