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PJM supports delaying December auction to deal with grievances over higher prices

PJM Affiliation, the largest U.S. grid operator, stated it supported the delay of the 2026/2027 Base Recurring Auction for around 6 months.

In a letter to stakeholders after markets closed on Thursday, the grid operator stated that it supported delaying the auction to answer a complaint gave the Federal Energy Regulatory Commission about capability rate boosts due to power plant exclusions in the most recent auction.

PJM will be supporting a delay of the PJM 2026/2027 Base Residual Auction for around six months ... Preparations for the December auction will continue in the event that FERC does decline the request, in which case PJM will proceed with the December auction as scheduled, the letter stated.

PJM's auction in July for 2025 to 2026 saw prices that were 833% greater than the previous year, pointing out decreasing supply and increased demand.

Several ecological groups, including the Sierra Club, Earthjustice, and the Natural Resources Defense Council, filed a. grievance regarding Dependability Must-Run (RMR) units.

The plants not consisted of in the auction have agreements,. known as RMR contracts, to run beyond their planned. retirement dates. Including these plants would have decreased. capability expenses by approximately $5 billion each year over the. next 3 year, the complain checks out.

The grievance and another letter sent out by The Organization of. PJM States, required RMR contracts to be represented.

Potential changes to the marketplace structure could. adversely effect PJM-operating Independent Power Producers. ( IPP) while benefiting transmission and distribution energies. and might reduce tightness in the approaching auction, Barclays. analysts stated.

IPPs Talen, Constellation, Vistra were down in between. 0.3% and 3.3% in the session.

(source: Reuters)