PJM’s initiative to internalize all generator payments moved forward at the MRC when stakeholders endorsed the RTO’s proposal to examine price formation.

A summary of the issues scheduled to be brought to a vote at the PJM Markets and Reliability Committee on Dec. 21, 2017.

PJM staff unveiled their proposal on price formation at last week’s Markets and Reliability Committee meeting.

PJM's proposal to change the Incremental Auction process was seven votes short of receiving the support needed, despite months of negotiation.

While stakeholders are divided on changes to PJM’s Incremental Auctions, hope remains for a compromise that can be implemented in time for next year’s BRA.

PJM hit a snag attempting to calculate the market seller offer cap (MSOC) for Capacity Performance units for the 2021/22 delivery year.

A consensus that appeared to be coalescing for how to revise PJM’s Incremental Auction process and address replacement capacity issues has dissipated.

Aside from endorsing some revisions, PJM stakeholders rejected or deferred votes at the Markets and Reliability Committee and Members Committee meetings.

FERC has approved PJM’s proposal for selling back excess capacity in this February’s third Incremental Auction for the 2017/18 delivery year.

PJM’s Independent Market Monitor urged FERC to address longstanding concerns over demand response providers and others selling “paper capacity.”