Date filed: March 7, 2024
Venue: Federal Energy Regulatory Commission
Docket No.: ER24-98-000
Summary:
On March 7, 2024, the Electric Power Supply Association joined the PJM Power Providers Group (jointly “P3/EPSA”) filed with the Federal Energy Regulatory Commission (“FERC”) a request for rehearing of the February 6, 2024, Order on the PJM Interconnection, LLC (“PJM”) in Docket No. ER24-98-000. The February Order rejected with guidance the PJM CIFP Capacity Market Reform Filing to modify the rules governing the market seller offer cap (“MSOC”) and Capacity Performance, as well as to adopt a forward-looking Energy and Ancillary Services (“EAS”) offset for purposes of calculating the Minimum Offer Price Rule (“MOPR”) and offer cap. The P3/EPSA rehearing request seeks rehearing on two specific errors in the February 6 Order addressing the role of the IMM in market mitigation and evaluation of offer caps and elimination of the physical penalty option for FRR entities. Among other things, the P3/EPSA rehearing request points to Commissioner Clements’ statement dissenting in part in the proceeding on the majority’s finding on these two issues which she believes are without merit. Specifically, she believes PJM met its FPA section 205 burden on proposed tariff revisions governing (1) penalty application to Fixed Resource Requirement (FRR) resources and (2) PJM’s role in administering its market power mitigation rules. The P3/EPSA rehearing request also re-emphasizes the vital need for continued reforms to PJM’s capacity market rules, particularly reforms allowing Capacity Market Sellers to fully reflect their costs and risks in offers, to ensure that resource adequacy and reliability are maintained.
