PJM says FERC capacity market order is too broad, disrupts market balance

摘要

PJM Interconnection Tuesday asked the Federal Energy RegulatoryCommission to reconsider and clarify several aspects of its landmarkcapacity market order, characterizing the rule changes as overly broadand disruptive to the delicate balance of PJM’s power markets.In its request for rehearing and clarification, the grid operator saidthe December 19 order (EL18-178) “disrupts the careful balance ofaccommodating state energy policy objectives” while maintainingcapacity market integrity.FERC’s order was intended to address the price suppressive andanti-competitive impacts of subsidized resources participating incapacity auctions alongside resources that do not receive subsidies.PJM said that for more than a decade, FERC has approved the useof a Minimum Offer Price Rule as a “guardrail” to protect againstcapacity market offers that were viewed as presenting a “significantthreat to market efficiency.”