The U.S. Court of Appeals for the District of Columbia Circuit on July 31 rejected challenges to ISO New England Inc.’s rules that provide an exemption to the minimum offer price rule, or MOPR, for certain renewable resources participating in the capacity market. In 2014, the Federal Energy Regulatory Commission approved revisions to allow up to 200 megawatts of state-sponsored renewable capacity to submit price offers below the MOPR from the ninth auction for the 2018-2019 commitment period, and allow up to 600 megawatts of unused portion of the capacity to be carried forward to two subsequent auctions. The reforms also replaced the vertical demand curve with system-wide sloped curve that procures capacity to meet variable demand set by supply prices, rather than a fixed demand. Petitioners, comprising power generators, utility holding companies, and distribution and sales companies, argued that the exemption undermines competition and causes price suppression. The court deferred to the commission’s conclusion that the potential for price suppression is limited because of the sloped demand curve, low cap on the exempted capacity, and expectations of lower load growth. The decision is a win for state policies supporting specific resource types. The case is NextEra Energy Resources LLC, et al v. FERC (17-1110).