PA Environment Digest Blog: Federal Energy Regulatory Commission Approves Extension Of PJM Capacity Auction Price Cap, Floor For Next 2 Auctions

On April 30, the PJM Interconnection announced the Federal Energy Regulatory Commission has accepted PJM’s proposal to extend the existing price collar used in the two most recent capacity auctions for two more future delivery years.

FERC’s April 28 approval of the PJM proposal will limit auction wholesale price outcomes at a price cap of approximately $325/MW-day and a price floor of $175/MW-day.

That price framework will apply to the upcoming auction closing July 7 to procure resources for the 2028/2029 Delivery Year and the auction closing Dec. 15 to procure resources for the 2029/2030 Delivery Year.

The price collar was also applied to prior auctions for the 2026/2027 and 2027/2028 delivery years.

The PJM proposal to maintain the price collar for the 2028/2029 and 2029/2030 delivery years was also supported by a coalition of all 13 governors, the White House National Energy Dominance Council and the U.S. Department of Energy.

FERC signaled in its order that “these circumstances support the continued application of a time-limited price collar to narrow the range of potential price outcomes, which will reasonably address concerns about excessive price volatility.”

Click Here for the PJM announcement.

The PJM Interconnection coordinates the wholesale electricity grid and markets for all or parts of 13 states—Delaware, Illinois, Indiana, Kentucky, Maryland, Michigan, New Jersey, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, and West Virginia—plus the District of Columbia.

PA Oil & Gas Industry Public Notice Dashboards:

-- PA Oil & Gas Weekly Compliance Dashboard - April 25 to May 1: Violations For Conventional Well Abandonment Top 204; Cleaning Up Shale Gas Wastewater Release For 245 Days [PaEN]

-- DEP - Day 245: Expand Operating LLC Continuing Cleanup Of Ongoing Shale Gas Fracking Wastewater Release From Well Pad In Great Bend Twp., Susquehanna County [PaEN]

-- DEP Signs Consent Orders With CNX Gas, Leatherwood LLC Requiring The Plugging Of 5 Conventional Coal Bed Methane Wells Prior To Longwall Coal Mining In Center Twp., Greene County [PaEN]

-- ‘Emergency’ Upset Natural Gas/Chemical Flare At MarkWest Harmon Cryogenic Natural Gas Processing Plant In Washington County Was Briefly Almost As Bright As The Moon Last Night - Live Breathe Project Cameras [April 30]

-- PA Oil & Gas Industrial Facilities: Permit Notices, Opportunities To Comment - May 2 [PaEN]

-- DEP Invites Comments On Chapter 105 Permit For 4.5 Mile EQT ARO Natural Gas Pipeline On State Forest Land In Lycoming County [PaEN]

-- DEP Posted 62 Pages Of Permit-Related Notices In May 2 PA Bulletin [PaEN]

-- DEP Accepting Comments On 2nd Stormwater Permit For SNA North LLC/QTS A.I. Data Center Project In Salem Twp., Luzerne County [PaEN]

-- Public Utility Commission Sets July 10 Telephonic Hearing On PPL Condemnation Of 30 Properties For The Sugarloaf 500/230KV Transmission Line In Luzerne County To Serve Data Centers [PaEN]

-- DEP To Hold June 16 Hearing On Water Quality Permit For Rustic Ridge II Coal Mining Permit In Westmoreland County [PaEN]

-- DEP To Hold May 21 Informal Conference To Take Comments On The Proposed Addition Of 7,154 Acres To The Rosebud Mining Company Penfield Coal Mine In Clearfield County [PaEN]

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-- Environmental Health Project Calls On Gov. Shapiro To Address Health Hazards Of Fossil Fuels [PaEN]

-- DEP Receives Federal Funding To Study Human Health Impacts Of Leaking, Abandoned Conventional Oil & Gas Wells; Conventional Regulation Updates Delayed; Reports On Setback Petition By End Of 2026 [PaEN]

-- House Committee Approves Bill To Strengthen State Response To Spills Of Hazardous Substances After Energy Transfer/Sunoco Jet Fuel Pipeline Spill In Bucks County [PaEN]

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-- US Dept. Of Energy Cyber Threat Center Issues Another Warning To Oil & Gas Industry About Automatic Tank Gauge Manipulation By Malicious Cyber Threat Actors [PaEN]

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-- Gov. Shapiro Appoints Mark Szybist New Special Counsel For Energy Affordability [PaEN]

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-- Inquirer Guest Essay: Utility Shutoffs Pose Dire Risks To Families Unable To Afford Energy Bills - By David Taylor, Director Of Patient Advocacy, Drexel University College Of Medicine

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-- Reuters: US Consumers Face Rising Electricity Prices Pushed By A.I. Data Center Demand, Rising Natural Gas Prices, Tariffs On Steel/Aluminum, While Benefits From Low-Cost Clean Power Capacity Emerge

-- Senate Committee Hears Electric Grid Issues Getting Worse; PJM Has Attracted 220 GW Of New Generation Proposals; PJM ‘Backstop’ Procurement Critical To Making Data Centers Pay For New Generation [PaEN]

-- WHYY - Susan Phillips: Gov. Shapiro Says Regulated Electric, Natural Gas, Water Utility System In PA Is ‘Broken’ In Letter To 24 Companies Laying Out New System To Rein In Corporate Profits

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-- PA House Energy Committee Sets May 4 Meeting To Act On More Bills To Address Electric Grid Reliability, Affordability Issues: Authorize Virtual Power Plants, More [PaEN]

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-- AP: Building Trades Unions Emerge As Key Political Allies Of Tech Giants In Push For A.I. Data Centers [PA Highlighted]

-- DEP Citizens Advisory Council Meets May 12 For Presentations On A Data Center Guide From Chester, Montgomery Counties; PFAS ‘Forever Chemical’ Contamination In Biosolids [PaEN]

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