By: EPSA with Co-petitioners
Venue: U.S. Court of Appeals DC Circuit [Cases 21-1214, 21-1216, 21-1217, 22-1063, 22-1065 & 22-1066 consolidated]
Date: June 13, 2022
EPSA is joined by its co-petitioners to appeal FERC’s actions regarding PJM’s Market Seller Offer Cap – the administrative cap applied to capacity offers to prevent the exercise of market power. In the orders underlying this appeal, FERC abandoned its previous findings that a default cap should recognize that a competitive capacity offer is one that includes the opportunity cost of assuming a capacity commitment. Having abandoned this approach and the economic theory underlying the broader market structure without explanation or even acknowledgment that it was doing so, Petitioners urge the court to vacate the FERC orders and remand the case back to the Commission.