The PJM Interconnection (PJM) is planning to ask the Federal Energy Regulatory Commission (FERC) to delay its 2026-2027 delivery year capacity auction by six months in response to a complaint that challenged the grid operator’s failure to reflect reliability must-run (RMR) power plants in its capacity auctions. RMR power plants are plants that have operated past their retirement dates to help prevent reliability problems. PJM has faced repeated auction delays in recent years, and the recent auction resulted in record high-capacity prices, significantly increasing electricity bills.
Supporters of the delay argue that the reforms help prevent future volatility and market penalties, while others say the delays will negatively affect market confidence and investment. PJM’s previous auction for 2025-2026 capacity year was also delayed.
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