PJM Interconnection will hold two integration capacity auctions in March 2010 to secure electric capacity for delivery years 2011-2012 and 2012-2013 to meet the capacity supply obligations of FirstEnergy's operating utilities within the footprint of American Transmission Systems Inc. (ATSI). The auctions are necessary because ATSI was not a member of PJM, and the ATSI operating utilities therefore did not participate in the 2008 and 2009 Reliability Pricing Model (RPM) base residual auctions for capacity for the 2011-2012 and 2012-2013 delivery years.
Two separate auctions will be held simultaneously - one for each delivery year - using a process similar to PJM's incremental RPM auctions, which are used by member companies to procure the capacity needed to meet PJM requirements. The ATSI operating utilities seek about 13,500 MW of resource-specific unforced capacity for 2011-2012 and 13,900 MW for 2012-2013.
"These two auctions are another opportunity for market participants to provide capacity not already secured through the annual RPM auction," said Andrew L. Ott, senior vice president of Markets for PJM.
PJM will be the auction manager. Monitoring Analytics will perform market monitoring and serve the same role and authority it does in other RPM auctions. Owners of existing generation resources located within the current PJM footprint will be expected to offer any available capacity to the integration auctions.
The integration auctions will enable FirstEnergy's utilities within ATSI to meet their requirements as described in their integration agreement with PJM and the integration plan filed on Aug. 17, 2009. Last month, the Federal Energy Regulatory Commission conditionally approved ATSI's proposal to withdraw from the Midwest Independent Transmission System Operator and integrate into PJM. The integration is expected to be effective June 2011.
Additional information about the auctions is available on PJM's Web site at http://www.pjm.com/markets-and-operations/atsi-integration/rpm-frr-integration-auctions.aspx. Questions regarding auction details and the ATSI integration into PJM can be e-mailed to email@example.com. PJM will conduct stakeholder sessions, including an FRR Integration Auction informational stakeholder session on January 19. Stakeholders can sign up for this session at this link: http://www.pjm.com/committees-and-groups/stakeholder-meetings/stakeholder-groups/feisg.aspx