EPSA Reacts to PJM Independent Market Monitor Analysis of PSEG/Exelon FRR Proposal
FOR IMMEDIATE RELEASE
CONTACT: Christina Nyquist | cnyquist@epsa.org
Washington, D.C. – A proposal by utilities PSEG and Exelon could raise electricity costs for New Jersey customers by more than $605 million annually, according to new analysis released Wednesday by the independent monitor for PJM Interconnection, the power grid operator for 65 million customers in D.C. and 13 Mid-Atlantic states including the Garden State. The cost increase and reduced choice comes at exactly the wrong time as the state looks to recover from the financial impacts of the COVID-19 pandemic, said Todd Snitchler, president and CEO of the Electric Power Supply Association.
PJM Independent Market Monitor (IMM) Joe Bowring put forward 10 scenarios in comments to the New Jersey Board of Public Utilities. Bowring concluded that “Using any plausible interpretation of the PSEG and Exelon FRR proposal, costs to New Jersey customers will increase significantly compared to continued participation in the PJM Capacity Market.”
The new analysis adds to May 2020 estimates showing that exiting PJM’s capacity market to procure power would reduce competition and drive up customer costs. Multiple stakeholders have voiced concern with the FRR—including clean energy interests, New Jersey’s ratepayer watchdog, large industrial customers and the AARP.
Snitchler released the following statement reacting to the IMM’s filing:
“We appreciate Dr. Bowring’s additional analysis of the potential impacts of an FRR being imposed on New Jersey. New Jersey policymakers say they want to have more energy choice and control, but the FRR delivers exactly the opposite. As the IMM filing points out, the FRR is not a simple, low cost alternative. Based on the IMM’s analysis the FRR would stifle new low- and zero- emission power generation resources in favor of existing plants—seemingly frustrating the state’s goal to rapidly deploy new renewable resources. As proposed, PSEG and Exelon seek to use the FRR to avoid competition, instead asking states to apply a ‘pay us first, give what might be left to anyone else’ approach.
Worse, the FRR will raise costs for the people of New Jersey when families are struggling to make ends meet and state leaders face profound budget deficits.
We know that competition among power generators leads to cleaner, lower cost solutions for customers and improves grid reliability. Competitive electricity markets can help states reduce emissions at least cost—they are not an obstacle.
EPSA and our members look forward to providing New Jersey and other states with thoughtful, market-based solutions to enable affordable clean energy integration.”
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The Electric Power Supply Association (EPSA) is the national trade association representing America’s competitive power suppliers. EPSA members provide more than 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.
