October 27, 2020
Visual Primer: FERC Order on PJM Capacity Market Reforms Hinders States’ Plans for Clean Energy Transition
Increasing decarbonization policies call for market constructs that recognize state preferences for renewables.
The Federal Energy Regulatory Commission has issued an order on implementing reforms that expand the minimum offer price rule (MOPR) to most state-subsidized resources participating in the regional capacity market administered by PJM Interconnection LLC, which operates across 13 states and the District of Columbia. The ruling has sparked concerns over its potential to harm renewable generation seeking to participate in the capacity market and frustrate state clean energy policies.