 Statement from PUCO Chairman on future electric reliability
COLUMBUS,
OHIO (Aug. 21, 2015) – Reliability of the electric grid in Ohio moved in the
right direction today with the inclusion of PJM Interconnection’s (PJM) Capacity
Performance product for the first time in the annual Base Residual Auction
(BRA). The BRA is an annual process to
procure generating capacity to meet the forecasted demand for electricity in
the region.
“At the
PUCO, we have the responsibility to focus on reliability in Ohio,” stated
Chairman Andre T. Porter, “The Capacity Performance product is designed to
ensure that our electric generators are available when needed most.”
In June
the Federal Energy Regulatory Commission (FERC) approved PJM’s proposal to
create the Capacity Performance product to be included in future PJM capacity
auctions. Capacity Performance is a penalty and incentive mechanism intended to
ensure when demand for electricity is high, like in times of extreme high or
low temperatures, generating units will be ready and able to produce
electricity to meet the higher demand.
Following
the 2014 Polar Vortex and the strain placed on the regional electric grid, the
PUCO first urged PJM to enhance system reliability by holding generators accountable
for their performance. Subsequently, the PUCO recommended that FERC accept
PJM’s Capacity Performance proposal in order to align resource performance with
reliability. This week, the PUCO further urged FERC to uphold their decision
and allow the transition to Capacity Performance to proceed as approved.
Results
from this year’s BRA were released today.
During the auction, PJM procured 19.8 percent above the forecasted peak
demand for the June 1, 2018 to May 31, 2019 delivery period.
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The Public Utilities Commission of Ohio (PUCO) is the sole agency charged with regulating public utility service. The role of the PUCO is to assure all residential, business and industrial consumers have access to adequate, safe and reliable utility services at fair prices while facilitating an environment that provides competitive choices. Consumers with utility-related questions or concerns can call the PUCO Call Center at (800) 686-PUCO (7826) and speak with a representative.
For additional information, contact: Matt Schilling | (614) 466-7750
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