This issue concerns design changes to incremental auctions as specified under the current tariff including:
PJM’s Market Monitor concerns with the Avoidable Cost Rate (ACR) values. The IMM states that the ACR values in the tariff are applicable to the 2012/13 Delivery Year; however, they are not appropriate for use in earlier Delivery Year Incremental Auctions. PJM noted that tariff changes would be required to use different default ACR values for Incremental Auctions prior to the 2012/2013 Delivery Year.
Clarification of the procurement process in Incremental Auctions using an Incremental Auction demand curve.
Allocation of the 2.5% deferred supply to the incremental auctions.
Providing replacement capacity to Load Serving Entities due to reductions in the reliability requirement in certain circumstances.
Modifications to the auction timeline to spread the auctions more evenly throughout the year.