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PJM offers guidance on implementing changes to minimum offer price rule


From the May 10, 2013 issue of Public Power Daily

Originally published May 10, 2013

PJM Interconnection plans to implement recently approved changes to its minimum offer price rule (MOPR) in time for its next forward capacity market auction in mid-May. The regional transmission organization provided guidance May 7 to market participants that submitted timely requests for unit-specific or categorical exemptions from the minimum offer price rule, in accordance with the Federal Energy Regulatory Commission’s May 2 order approving changes to the MOPR (see Public Power Daily, May 6). 

Those changes include two categorical exemptions, one for self-supplied capacity that meets net-short and net-long thresholds and the other for "competitive entry" (units that receive no outside funds or receive such funds through a competitive auction open to all resources, both new and existing).

Participants that have been granted a competitive entry or self-supply exemption "may submit sell offers starting at $0/MW-day" in the May auction "whether or not they also submitted a unit-specific exception request and regardless of any minimum sell offer level approved by PJM in any unit-specific MOPR exception process for that resource," PJM said.

Market participants that have been granted a unit-specific exception "must submit a sell offer consistent with the approved offer value if a competitive entry or self-supply exemption was either not submitted or was submitted but not approved by PJM," it said.

PJM will hold a base residual auction on May 13-17 for the June 1, 2016-May 31, 2017, capacity delivery year. The auction results are slated to be released May 24.

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