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Utility Dive: FERC MOPR Order May Have 'Paradoxically Unintended Consequences': PJM

Posted by Catherine Morehouse on Jan 22, 2020

Utility Dive noted AEE's coalition filing with ACORE, AWEA, and SEIA asking FERC to revisit its December 'MOPR' order in its coverage of stakeholders push-back on the controversial federal pricing proposal, including concerns raised by PJM. Read excerpts below and the entire UD piece here. 

Clean energy advocates and competitive interests have raised concerns that FERC's December order is too wide-sweeping and will harm the ability of new clean energy technologies to enter the market. Under PJM's original order, the MOPR was largely intended to apply to new natural gas resources, where it expected most interference to come from, according to the grid operator's comments on the FERC-proposed MOPR. But FERC's action was much more wide-sweeping, proposing to administratively raise the bids of any new resource in the market that receives a state subsidy...

"Throughout this proceeding, PJM has strongly advocated reasonable exemptions to and constraints on an expanded MOPR to keep the focus on resource offers that present the greatest concerns, in terms of likelihood and extent, of interfering with efficient price formation," the grid operator wrote. PJM also expressed concern that the order directs the grid operator to establish a set minimum offer price, "based upon a prescriptive formulation."

Renewable energy advocates including the Solar Energy Industries Association, the American Wind Energy Association, the American Council on Renewable Energy and Advanced Energy Economy filed together for rehearing on Wednesday as well. The proposed rate, "if ultimately implemented, will weaken confidence in PJM and its markets, drastically alter investment and development decisions related to all resources in PJM and will significantly and negatively impact the public interest," the groups wrote in their comments. A FERC spokesperson told Utility Dive the commission could not comment on pending matters, but rehearing petitions will be considered by the Commission...

Read the entire UD piece here. 

Topics: AEE In The News