State agencies, clean energy groups, public power advocates, nuclear power interests and other stakeholders are calling on the Federal Energy Regulatory Commission to rethink sweeping changes it directed PJM Interconnection to make to its capacity market. Warnings of artificially inflated prices, over-procurement of capacity and a potential exodus by states and market participants flooded the agency last week in highly anticipated rehearing requests. FERC’s December 19 order (EL16-49, EL18-178) expanding application of the minimum offer price rule (MOPR) to all new resources receiving state subsidies drew more than 50 requests for rehearing or clarification, based on a review of the commission’s electronic docket system. Some entities, such as merchant generator Calpine, the Electric Power Supply Association and PJM’s independent market monitor, applauded the order as decisive action to combat the potential pricesuppressing effects of state subsidy programs. In requests due Tuesday, they sought tweaks to the order on discrete issues, such as clarifying that carbon pricing programs like the Regional Greenhouse Gas Initiative would not be considered state subsidies under the order. Sarah Novosel, senior vice president of government affairs and managing counsel for Calpine, admitted that the generator was “surprised it was such a strong, decisive decision,” during a Wednesday panel discussion about making sense of FERC’s MOPR order hosted by Resources for the Future in Washington.
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