[USA] “PJM Files Capacity Market Proposals on Generator Subsidies- Seeks to Protect Benefits of Competition While Accommodating States’ Policies”

[PJM, 9 April2018]

PJM has requested FERC to identify how the wholesale electricity capacity market should respond to state subsidies of energy generators. In their filing, PJM has included two proposed solutions: 1) PJM’s recommended solution, Capacity Repricing, would “create a two-stage capacity auction process to accommodate state subsidies without distorting market prices;” and the other proposal 2) MOPR-Ex, which (as the name implies) extends the Minimum Offer Price Rule (MOPR) to “require a subsidize generation resource to remove the effect of the subsidy” from its capacity market bid. PJM has requested FERC make a decision on its subsidized proposals by June 29. A decision by this date would see tariff changes implemented by January 2019 and thereby allow the chosen proposal to take effect by the May 2019 annual capacity auction.