Federal regulators on Friday approved a request from the largest U.S. power market to wait until next summer to conduct another power supply auction after complaints about soaring wholesale capacity market prices.
The 6-month delay approved by the Federal Energy Regulatory Commission provides more time for regional grid operator PJM Interconnection to address concerns that the market is designed to create perceived power shortages, and that drives up prices.
The grid operator for 65 million people across 13 states argued to FERC that “significant market uncertainty” would make it difficult to hold its planned auction in December. The auctions are for contracts that ensure power plants are available when needed during periods of high demand.
“The six-month delay in the capacity auction schedule removes uncertainty and provides time for PJM, stakeholders and FERC to address potential refinements to capacity market rules in advance of the next auction,” PJM spokesperson Jeff Shields told POLITICO’s E&E News in a statement.
