PJM market monitor asks FERC to end grid operator’s energy efficiency capacity payments

Ethan Howland | Source: Utility DIVE | Posted 07/16/2024

The complaint from Monitoring Analytics adds to energy efficiency issues in the PJM Interconnection’s capacity market, including a possible bankruptcy by Affirmed Energy. The Federal Energy Regulatory Commission should order the PJM Interconnection to stop making capacity payments for energy efficiency resources and recoup past payments, according to a complaint filed at the agency by the grid operator’s market monitor.

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A complaint filed by the market monitor at the Federal Energy Regulatory Commission (FERC) is pushing for the PJM Interconnection to halt capacity payments for energy efficiency resources and recover past payments. The complaint alleges that since 2016, PJM has been making capacity payments for energy efficiency resources that are ineligible under rules not included in its tariff, amounting to $126 million for the 2024/25 delivery year. The market monitor contends that energy efficiency resources are already compensated through the PJM markets and should not receive additional capacity payments.

Additionally, Affirmed Energy, an energy efficiency provider, has filed an "emergency" complaint at FERC claiming that PJM is withholding $93 million in collateral, leading the company to face bankruptcy. Affirmed Energy asserts that it cannot continue operations or participate in future capacity auctions without access to this collateral. PJM's decision to withhold the collateral has resulted in layoffs at Affirmed Energy, which has participated in PJM markets since 2014 and posted the collateral in 2022 for the completed 2023/24 delivery year, according to the complaint.

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Source Link: https://www.utilitydive.com/news/pjm-market-monitor-ferc-energy-efficiency-capacity-affirmed-energy/721330/

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PJM market monitor asks FERC to end grid operator’s energy efficiency capacity payments

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