Statement From Electric Power Supply Association President and CEO Todd Snitchler on Third Circuit Court Denial of Minimum Offer Price Rule Change Appeals
FOR IMMEDIATE RELEASE: December 1, 2023
CONTACT: Christina Nyquist | email@example.com
WASHINGTON, D.C. – Following a disappointing Court decision issued today on wholesale electricity market rules impacting power providers and consumers in the PJM Interconnection region, market design reforms that properly compensate dispatchable power generation resources are needed to ensure Americans have access to reliable energy, said the head of the trade association representing competitive power suppliers throughout the U.S. Members of the Electric Power Supply Association (EPSA) own and operate about 50,000 MW of generation capacity in the PJM market, which supplies power to 65 million homes and businesses in 13 states and the District of Columbia.
The U.S. Court of Appeals for the Third Circuit today denied EPSA’s and others’ appeals to review the Federal Energy Regulatory Commission (FERC)’s acceptance of proposed changes submitted by PJM to its Minimum Offer Price Rule – changes known as the “Focused MOPR.”
EPSA President and CEO Todd Snitchler issued the following statement on the decision:
“At a time when so many are calling to prioritize reliable power nationwide and ensure PJM’s capacity market can retain critical power generation resources needed for a reliable electric system, we are disappointed that the Court was satisfied with FERC’s responses to our many legal arguments in the case. While we are still reviewing the decision, our initial impression is that the Focused MOPR as approved and upheld today cripples the ability of the market to establish a clear and useful price signal for capacity resources and address the price suppressive effects of subsidized resources clearing the system, most of which cannot deliver power on a 24/7 basis.
But the issues raised in the MOPR dispute highlight the more pressing need for a holistic approach to market design long called for by EPSA that would resolve the challenges we continue to see posed by a piecemeal approach – and deliver needed compensation to dispatchable resources.
Now more than ever, with at least 40 GW of generation flagged by PJM for being at risk of retirement without sufficient replacement, it is critical that the resources needed for reliability have adequate compensation to stay running. As it stands, the Focused MOPR, paired with other flawed policies, does not advance that outcome.
Market participants including renewable developers, experts, and FERC commissioners this summer reaffirmed that the PJM capacity market is the best mechanism to secure resource adequacy, but that reforms are needed to ensure its continued efficacy. EPSA urges policymakers and regulators to focus on reforms to power markets that properly value reliability resources at a competitive price. EPSA reiterates its desire to work closely with PJM and other stakeholders to help achieve that goal.”
The Electric Power Supply Association (EPSA) is the national trade association representing America’s competitive power suppliers. EPSA members provide about 150,000 MW of reliable and competitively priced electricity from environmentally responsible facilities using a diverse mix of fuels and technologies including natural gas, wind, solar, hydropower, geothermal, storage, biomass, and coal. EPSA seeks to bring the benefits of competition to all power customers. Learn more at www.epsa.org and connect with us on LinkedIn and Twitter @EPSAnews.