Andrew Vietze - Pine Gate Renewables | LinkedIn (original) (raw)

PJM artificially inflates capacity prices by billions, complaint alleges. The PJM Interconnection artificially boosts capacity prices by not accounting for reliability must-run power plants in its capacity market, the Sierra Club and other groups told FERC. The PJM Interconnection’s failure to consistently account for power plants with reliability must-run contracts in its capacity market could drive up ratepayer costs by 15billioninthenextthreecapacityauctions,accordingtoacomplaintfiledFridayattheFederalEnergyRegulatoryCommissionbytheSierraClubandothergroups.ByfailingtoeitherrequireRMRresources—powerplantsthathavebeengivencontractstocontinueoperatingpastplannedretirements—tobidintocapacityauctionsortoaccountfortheexpectedoutputfromthoseplantsinitsforecastforhowmuchcapacityPJMneeds,thegridoperatorforcesconsumerstopaytwiceforthoseplants’capacityvalue,whichis“unjustandunreasonable,”thegroupssaidinthecomplaint.“FailingtoaccountforresourceadequacyprovidedbyRMRunitsproducescapacitymarketpricesignalsthataredisconnectedfromtheactualsupplyanddemandbalanceonthegrid,”thegroupssaid.“Theresultisartificiallyelevatedpricesthatharmthemarketsbyencouraginginefficientdecisionsbybothsupplyanddemandsidemarketparticipants.”UnlikeISONewEngland,theNewYorkIndependentSystemOperatorandtheCaliforniaIndependentSystemOperator,PJMdoesn’trequireRMRresourcestoparticipateintheircapacityauctionsorequivalentmarket,accordingtothecomplaint.UnderPJM’sauctionheldinJuly,formostofthePJMregion,capacitypricesforthe2025/26deliveryyearsoaredto15 billion in the next three capacity auctions, according to a complaint filed Friday at the Federal Energy Regulatory Commission by the Sierra Club and other groups. By failing to either require RMR resources — power plants that have been given contracts to continue operating past planned retirements — to bid into capacity auctions or to account for the expected output from those plants in its forecast for how much capacity PJM needs, the grid operator forces consumers to pay twice for those plants’ capacity value, which is “unjust and unreasonable,” the groups said in the complaint. “Failing to account for resource adequacy provided by RMR units produces capacity market price signals that are disconnected from the actual supply and demand balance on the grid,” the groups said. “The result is artificially elevated prices that harm the markets by encouraging inefficient decisions by both supply and demand side market participants.” Unlike ISO New England, the New York Independent System Operator and the California Independent System Operator, PJM doesn’t require RMR resources to participate in their capacity auctions or equivalent market, according to the complaint. Under PJM’s auction held in July, for most of the PJM region, capacity prices for the 2025/26 delivery year soared to 15billioninthenextthreecapacityauctions,accordingtoacomplaintfiledFridayattheFederalEnergyRegulatoryCommissionbytheSierraClubandothergroups.ByfailingtoeitherrequireRMRresources—powerplantsthathavebeengivencontractstocontinueoperatingpastplannedretirements—tobidintocapacityauctionsortoaccountfortheexpectedoutputfromthoseplantsinitsforecastforhowmuchcapacityPJMneeds,thegridoperatorforcesconsumerstopaytwiceforthoseplants’capacityvalue,whichis“unjustandunreasonable,”thegroupssaidinthecomplaint.“FailingtoaccountforresourceadequacyprovidedbyRMRunitsproducescapacitymarketpricesignalsthataredisconnectedfromtheactualsupplyanddemandbalanceonthegrid,”thegroupssaid.“Theresultisartificiallyelevatedpricesthatharmthemarketsbyencouraginginefficientdecisionsbybothsupplyanddemandsidemarketparticipants.”UnlikeISONewEngland,theNewYorkIndependentSystemOperatorandtheCaliforniaIndependentSystemOperator,PJMdoesn’trequireRMRresourcestoparticipateintheircapacityauctionsorequivalentmarket,accordingtothecomplaint.UnderPJM’sauctionheldinJuly,formostofthePJMregion,capacitypricesforthe2025/26deliveryyearsoaredto269.92/MW-day, up from 28.92/MW−dayinthelastauction,thegridoperatorsaidinanauctionreport.Priceshitzonalcapsof28.92/MW-day in the last auction, the grid operator said in an auction report. Prices hit zonal caps of 28.92/MW−dayinthelastauction,thegridoperatorsaidinanauctionreport.Priceshitzonalcapsof466.35/MW-day for the Baltimore Gas and Electric zone in Maryland, and 444.26/MW−dayfortheDominionzoneinVirginiaandNorthCarolina.Totalcosttoconsumersjumpedto444.26/MW-day for the Dominion zone in Virginia and North Carolina. Total cost to consumers jumped to 444.26/MW−dayfortheDominionzoneinVirginiaandNorthCarolina.Totalcosttoconsumersjumpedto14.7 billion from $2.2 billion in the previous auction. TNi Energy-BESS 10HR LDES, we've innovated a groundbreaking method that repurposes recycled lead-acid batteries, extending their life span to 25 years for C1 to C20 Energy Storage purposes. Previously, the industry lacked a safe and environmentally conscious alternative to lithium | sodium-ion batteries. However, our proprietary technique reveals that lead-acid batteries are not only SAFER but also 60-75% more cost-effective than their hazardous counterparts. Made in the USA. 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