PJM Considers Capacity Repricing In Effort To Counter Subsidy Programs
September 11, 2017
PJM Interconnection is moving closer to implementing measures to counter the effect of state energy subsidies on capacity auction prices. A PJM task force is debating issues that include whether repricing should be triggered only when a subsidy occurs in a capacity delivery year; if retriggering would apply to carbon dioxide pricing schemes; and whether repricing should only be triggered by state-sponsored subsidies. PJM’s market monitor has said that the subsidies threaten the competitiveness of the RTO’s wholesale power market.