Utility Dive outlined PJM's proposal to relax its minimum offer price rule, quoting AEE's Jeff Dennis. Read snippets below and the full article here.
FERC's inability to reach a decision on PJM's proposed changes to its MOPR — a rule designed to prevent a market participant from offering artificially low bids to suppress capacity prices — is the latest twist in a controversial regulatory process.
In June 2018, FERC ordered PJM to expand its MOPR to prevent subsidized resources from distorting the grid operator's capacity market, which aims to make sure PJM has enough power supplies to meet its needs. FERC Chairman Richard Glick, then a commissioner, voted against the decision...
Renewable energy groups were pleased the focused MOPR will take effect.
"The narrowly-tailored MOPR that PJM filed corrects rampant legal and economic flaws in the pre-existing expanded MOPR, and reaffirms the importance of respecting and accommodating legitimate state energy policy objectives in the wholesale market," Advanced Energy Economy Managing Director Jeff Dennis said in a statement.
The narrowly-tailored MOPR returns the market rule to its original purpose of addressing the limited circumstances where capacity buyers have an incentive and ability to manipulate market prices, Dennis said.
Read the full article here.