Statement From EPSA’s Todd Snitchler Says Delayed Base Residual Auction is Critical Following FERC’s Rulings on PJM MOPR Order Rehearing Requests
Washington, D.C. – In response to rulings announced today by the Federal Energy Regulatory Commission (FERC) surrounding the future of PJM Interconnection’s capacity market, where power generators compete to provide reliable, least cost electricity for 13 Northeast states and the District of Columbia, Todd Snitchler, president and CEO of the Electric Power Supply Association (EPSA), issued the following statement.
“FERC and Chairman Chatterjee today put consumers first by clarifying a ruling with significant impacts for 65 million electricity customers in PJM and nationwide. This is a step toward resolving concerns surrounding state goals and regional power markets, and we are pleased to see the Commission act swiftly in support of fair competition in PJM’s capacity market.
We urge the Commission to act quickly and ensure an expeditious timeline for the long overdue Base Residual Auction (BRA) so that normal market business can resume. We can only know the true impact of FERC’s December 2019 “MOPR Order,” which has been subject to much speculation and competing cost estimates, once the auction is held. Our energy future hangs in the balance as some states consider drastic, destructive options such as abandoning regional markets—auction results will provide
policymakers with sound, reality-based data to make the best possible decision.
The bottom line is that customers pay the price when certain resources and companies enjoy an unfair market advantage that squeezes out competitors and removes the pressure to innovate, perform efficiently, control costs, and nimbly respond to changing circumstances. EPSA agrees with the
Commission that voluntary Renewable Energy Credits (RECs), which represent arms-length, voluntary transactions between two private entities, should not be subject to the MOPR.
There is a bright future for PJM’s competitive markets, and we look forward to working with FERC and all stakeholders to build a durable regulatory framework for sustainable environmental progress.”
