Energy / Utilities

PJM to review impact of capacity market construct on RPM

WILMINGTON, DE — “Following months of debate on the scope of the undertaking, a coalition of demand-side stakeholders won approval at Thursday’s PJM Markets and Reliability Committee meeting to review the capacity market construct.

Overcoming what had appeared to be strong opposition, the problem statement and issue charge were endorsed with a sped-up timetable revised to make potential changes in time for the 2018 Base Residual Auction.

The initiative cites the aborted power purchase agreements for FirstEnergy and American Electric Power in Ohio and the zero-emission credits approved for nuclear plants in Illinois as examples of the threats public policy initiatives pose to price formation in the capacity market. It notes a pending complaint by Calpine asking FERC to impose the minimum offer price rule (MOPR) on existing generation. (See FERC Rescinds AEP, FirstEnergy Affiliate-Sales Waivers.)”

— Rory D. Sweeney, RTO Insider

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