PJM said that the auctions are necessary because ATSI was not a member of PJM and the ATSI operating utilities 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 13,500MW of resource-specific unforced capacity for 2011-2012 and 13,900MW for 2012-2013.
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.
Last month, the Federal Energy Regulatory Commission conditionally approved ATSI’s proposal to withdraw from the Midwest Independent System Operator and integrate into PJM. The integration is expected to be effective in June 2011.
