A PJM official urged officials to embrace carbon pricing rather than exit the capacity market in response to FERC expanding the minimum offer price rule.

FERC voted 2-1 to extend PJM’s MOPR to all new state-subsidized resources, saying it was needed to combat price suppression in the RTO’s capacity market.

Rising state subsidies for renewable and nuclear power require PJM to revamp its MOPR to address price suppression in its capacity market, FERC ruled.

Three owners of gas-fired generation in PJM’s territory have filed a complaint asking FERC to direct the RTO to adopt what they’ve termed a “clean MOPR.”

PJM is pressing FERC to make a decision on the RTO’s “jump ball” capacity filing, arguing that the commission is within its authority to do so and pointing out what it considers to be hypocrisy in opponents’ criticism of the filing.

Comments on PJM’s “jump ball” proposals for protecting the capacity market from subsidized resources were almost uniformly negative.

FERC Commissioner Robert Powelson said that he sees an “erosion of confidence” in RTO stakeholder processes.

PJM will ask FERC to choose between capacity market proposals by its staff and its Market Monitor (MOPR-Ex) to insulate its market from state subsidized generation.

PJM has a lot on its plate for 2018, including an ongoing effort to change its capacity market structure, the DOE NOPR and gas-electric coordination.

PJM’s long-awaited capacity construct redesign will have to wait at least another month for endorsement by the Markets and Reliability Committee.