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AG & DEE Argue “Exposing” SOS Customers To PJM Capacity Prices -– Without Hedging At Least Part Of That Exposure – Warrants Inquiry”
Dockets:
FC 1017
Category: District of Columbia
The DC AG and Department of Energy and Environment filed comments saying:
“PJM’s approach to capacity accreditation has varied wildly in recent years, with significant changes in particular for the capacity values attributable to renewable sources.”
- “That said, the issue of exposing SOS customers to PJM capacity prices – without hedging at least part of that exposure – warrants further inquiry. It may be that a Renewable PPA is not the optimal vehicle for hedging against capacity price increases. It may also be true that given how high current PJM capacity prices are, long-term contracting around capacity may not be advantageous at this time, though DCG notes that other regions and utilities do have higher capacity prices and PJM capacity prices may yet climb higher. Long-term contracting can also provide value through hedging part but not all of the SOS load, smoothing out risk profiles given uncertainties for whether capacity prices will rise or fall.”
- The Commission should direct Pepco to prepare an analysis of long-term contracting and hedging opportunities associated with the PJM capacity market and convene a technical conference to discuss the results of its analysis.”
District of Columbia Government Comments (10/10/2025)
FC 1017
(In the Matter of the Development and Designation of Standard Offer Service in the District of Columbia)
