Peak Demand Falls — PJM Cancels Capacity Auction

PJM Interconnection, the private corporation that manages the regional transmission system including Maryland, has cancelled one of their regular capacity auctions.

These auctions are based on forecast of peak demand during the hottest summer months. Local utilities must purchase contracts for generation capacity to ensure that they will have sufficient power to meet peak demand.

Even before the current recession, demand forecasts were falling because of increasing energy efficiency.

Sent: Thur 02.04.2010 1:01 p.m.

Subject: 2011/2012 Second Incremental Auction Cancelled

Dear Members,

This is to inform PJM Market Participants that the RPM Second Incremental Auction for the 2011/2012 Delivery Year originally scheduled for July 12, 2010 has been cancelled. Through the 2011/2012 Delivery Year, Second Incremental Auctions are conducted only when there is an increase in the RTO’s unforced capacity obligation due to a load forecast increase. As the 2010 RTO peak load forecast for the 2011/2012 Delivery Year is lower than the peak load forecast used in the 2011/2012 Base Residual Auction, the 2011/2012 Second Incremental Auction is cancelled.

Please direct any questions to the RPM Hotline at rpm_hotline@pjm.com.

This provides further ammunition for those who say that PJM’s proposed multi-billion-dollar coal-by-wire transmission projects are not needed.

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