Less than three weeks before it was scheduled to take place, the
Federal Energy Regulatory Commission ("FERC") has ordered
PJM Interconnection, L.L.C. ("PJM") to postpone its next
capacity auction.1 The order, issued on July 25, 2019, responds
to a motion from April 10, 2019, in which PJM requested that FERC
allow it to proceed with its annual Base Residual Auction
("BRA") for the 2022/2023 Delivery Year (June 1, 2022
through May 31, 2023), planned to be held August 14–28 of
this year, without risk of refunds or a subsequent rerun of the
auction. FERC instead ordered PJM to postpone the BRA until
replacement rules — rules FERC approves as just and
reasonable — are in place.
While the postponement removes the threat of a market rerun and
the potential for resetting prices or capacity awards, it adds new
uncertainty for capacity market participants, as 2022/2023 BRA
capacity commitments and prices will not be known for the
indefinite future and will be decided by
