Several wholesale capacity markets have experienced low clearing prices in recent years, due in part to state-subsidized resources (renewables and, sometimes, nuclear) outcompeting unsubsidized generators (natural gas and coal) with low bids. Last month, the Federal Energy Regulatory Commission (FERC) released a long-awaited—and controversial—final order that directs regional grid operator PJM to expand its minimum offer price rule (MOPR) to state-subsidized resources in the capacity market. In particular, the FERC’s order requires PJM to set a minimum bid price for all new and existing resources—with some exceptions—that receive out-of-market state subsidies.
By requiring state-subsidized resources to comply with MOPR, market prices for capacity would rise. FERC’s order, which is intended to restore “just and reasonable” rates, has been praised by fossil fuel generators. However, environmental groups and consumer groups have argued that the rule could prevent state-sponsored clean energy resources from participating in the market and could lead to high costs for consumers. Join Resources for the Future (RFF) on Wednesday, January 22 for a brief primer on the MOPR, followed by a panel discussion on the implications of FERC’s MOPR order for states’ clean energy policy goals, anticipated impacts on the resource mix in PJM, and potential impacts on ratepayers.
When: Wednesday, January 22, 9:00 a.m.–10:30 a.m.
Doors will open and a light breakfast will be served at 8:30 a.m.
Where: Resources & Conservation Center, 1400 16th St. NW, Washington, DC, 20036
Kathryne Cleary, Resources for the Future
Craig Glazer, PJM Interconnection
Robert Gramlich, Grid Strategies
Sarah Novosel, Calpine Corporation
Susan Tierney, Analysis Group, Resources for the Future
Moderator: Karen Palmer, Resources for the Future
Visit the event webpage for more information.