AEPSC 2024 PJM Capacity Solicitation for Planning Year 2026/2027

American Electric Power Service Corporation (AEPSC) as agent for its operating companies is seeking pricing for PJM Capacity for Planning Year (PY) 2026/2027.

Specifically, AEPSC is seeking the following requirements for PJM Capacity:

• Volume: Accepting offers for any MW volume counterparty is interested in submitting. The final volume to be determined once all offers are reviewed and evaluated. Offers in the full amount or blocks of 10MWs or greater will be considered.
• Price: Pricing to be based on a specified percentage above the Base Residual Auction (BRA) Price for the 2026/2027 Planning Year. Bidders are to submit offer in the form of the specified % above the 2026/2027 BRA Price.
• Type: Unit-specific only
• Location: RTO LDA
• Security Considerations: To address potential PAI events, Payment and Collateral requirements, $75,000/MW in total will be required. Seller to post $5,000/MW at agreement execution and the remaining $70,000/MW 60 days prior to the 2026/2027 BRA.
• Potential Forms of Security:
  • Parent Guarantee from an Investment Grade Guarantor (BBB- and Baa3) and in a form acceptable to AEP Credit Risk Management
  • Letter of Credit issued by a U.S. bank or the U.S. Branch of a foreign bank, who is not affiliated with the Bidder or its Guarantor with a Credit Rating of at least “A-” in the case of S&P and “A3” in the case of Moody’s, and in a form acceptable to AEP Credit Risk Management
  • Cash (U.S. Dollars)
• Transaction to be completed in Capacity Exchange by the end of day after agreement execution.
• Pricing sent to hsturner@aep.com and abmichael@aep.com by noon on August 27, 2024 for PY 26/27