PJM files amended reliability backstop proposal with FERC for March 2027 start

PJM filed an amended proposal with the Federal Energy Regulatory Commission (FERC) aiming to begin a Reliability Backstop Procurement on March 1, 2027, changing cost allocation, credit requirements and exit responsibilities for load-serving entities (LSEs), according to PJM.

The procurement is intended to fill the approximately 6,800 MW generating capacity shortfall from PJM's 2028/2029 Base Residual Auction and to allocate the costs for that new capacity to the Large Loads driving them, PJM said. The shortfall will be recalculated with updated information given the new timeline. The procurement still aims to secure resources for up to 15 years with a maximum willingness to pay equal to a MW-weighted average of $555/MW-day.

Under the proposed timeline, the bid window would close March 28, with the final procurement target and supply amounts determined on April 28 and results posted on May 10. FERC largely accepted PJM's initial proposal on Sept 29 but suspended its execution for five months to settle certain topics, according to PJM.