September 21, 2024
FERC Seeks Comments on PJM Capacity Market
FERC is asking for stakeholder comments regarding its technical conference last month on capacity markets and the role of PJM’s MOPR.

FERC is asking for stakeholder comments regarding its technical conference last month on capacity markets and the role of PJM’s expanded minimum offer price rule (MOPR) in its market (AD21-10).

The conference, which took place March 23, featured discussions on the role of capacity market designs in PJM, ISO-NE and NYISO and the ways state policies are impacting the entry and exit of new resources into the markets. Both FERC Chair Richard Glick and PJM CEO Manu Asthana said during discussions that the MOPR is “not sustainable” because it is hampering state efforts to decarbonize. (See PJM MOPR in the Crosshairs at FERC Tech Conference.)

Participants in the conference considered the implications of retaining the controversial MOPR in the PJM market and also alternatives that could replace it.

PJM Capacity Market
| Monitoring Analytics

In its notice filed this week, FERC invited “all interested persons” to file comments on several different topics in the technical conference. Stakeholders are being encouraged to limit feedback to 24 questions highlighted in a supplemental notice for the conference issued on March 16, including the goals of centralized capacity markets in the eastern RTOs/ISOs and the long-term implications of continuing with the status quo MOPR framework for PJM.

The commission is also asking for responses to 22 different questions specifically regarding PJM’s capacity market. Some of the questions include whether maintaining the MOPR would result in over-procurement of capacity, what the benefits of the MOPR on the market are and what exemptions should be considered in a targeted MOPR.

FERC said comments need to be submitted by April 26; reply comments are due by May 10. The commission said the comments on the first 24 questions should not exceed 25 pages and reply comments should not exceed 15 pages. The initial and reply comments to the PJM-specific questions are not subject to page limitations.

Capacity MarketFERC & FederalPJMPublic Policy

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