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PJM Capacity Auction on Schedule With Issuance of FERC Orders

The PJM Interconnection capacity auction for the 2025/2026 Delivery Year will take place as scheduled in June, PJM announced Feb. 7 following two recent Federal Energy Regulatory Commission orders on PJM’s capacity market rules.

On Jan. 30, FERC approved the main component of PJM Interconnection’s two-part proposal to reform its capacity market rules, “seeking broadly to facilitate the energy transition while maintaining adequate generation resources to meet future electricity demand,” it said.

That first FERC order accepted PJM’s proposal to expand the Effective Load Carrying Capability (ELCC) methodology to better evaluate the contribution of each generation resource to the reliability of the system. The enhanced ELCC methodology includes thermal generators and accounts for correlated generator outages that may occur in extreme operating conditions.

PJM is reviewing FERC’s Feb. 6 order rejecting the second component of PJM’s capacity market rule reform.

PJM’s second filing sought to allow generation owners bidding into PJM’s capacity market to better reflect the financial risk they take when committing to PJM’s Capacity Performance requirements.

That filing also sought to align consequences of nonperformance during Performance Assessment Intervals for resources that are committed in Fixed Resource Requirement plans and those that are committed through the capacity market. The filing also sought to improve and clarify certain Capacity Performance requirements.

The 2025/2026 Base Residual Auction, as the capacity auction is formally named, opens June 12 and closes June 18, with results posted June 25.

The schedule for all pre-auction activities remains unchanged; the detailed auction schedule is available on the Capacity Market page of PJM.com.

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