PJM Moves Forward On Capacity Repricing Plan, Rejecting Alternative
January 18, 2018
PJM will ask the Federal Energy Regulatory Commission to approve new capacity price formation rules designed to allow renewable resources subsidized by state policies to remain in the market without artificially lowering prices. The proposed “capacity repricing” approach would replace the current minimum offer price rule (MOPR) with a two-stage capacity auction. The decision by PJM staff excludes consideration of an alternative proposal by the independent market monitor to expand the MOPR to include all resources.