Capacity Proxy Price Pursuant to Pennsylvania Public Utility Commission (“PA PUC”) authorization, Duquesne Light’s SMA was amended to implement a Capacity Proxy Price (CPP) for Duquesne Light’s March 18, 2024 solicitation for fixed priced two-year default supply contracts for the period June 2024 through May 2026. As of the date of that solicitation, PJM had not yet conducted and posted its base residual auction (“BRA”) results to establish an actual initial capacity price for Energy Year 2025-2026. As of January 30, 2024, the CPP has been approved for the March 2024 auction. Consistent with the SMA as amended, as well as its treatment of past CPPs, DLC will begin the process of resettling the implementation of the CPP once the initial clearing from the Energy Year 2025-2026 base residual auction (“BRA”) has cleared and is posted. DLC will make additional adjustments as the incremental auctions are completed and the final price is cleared. This will continue until the existing contract impacted expires. Note that the SME amendments to implement the CPP did not impact the allocation of capacity volumetric risk. The Supplier continues to bear the risk associated with the capacity volatility submitted and settled with PJM. The CPP for 2025/2026 Energy Delivery Year is $31.59/MW-day, please see the table below. | 2023/2024 Delivery Year. 3rd Incremental Auction. Adjusted Zonal Net Load Price ($/MW-day) | 2024/2025 Delivery Year. Base Residual Auction. Adjusted Zonal Net Load Price ($/MW-day) | 2025/2026 Capacity Proxy Price ($/MW-day) | | $34.18 | $28.99 | $31.59 |
Updated Appendix F of the SMA can be found here: Appendix F |