The market monitor says the proposal would remove incentives for replacement capacity, potentially impacting reliability and raising costs for consumers.
The complaint alleges that indicated energy efficiency sellers lack evidence to support payments for the 2025/2026 capacity market delivery year.
The decision hinges on Sayreville reaching an emissions offset agreement with the state of New Jersey before Sept. 1.
The decisions enable two mothballed power plants totaling over 300-MW of capacity to potentially return to service in PJM, addressing capacity needs.
GenOn Holdings Inc. faces FERC penalties for inaccurate energy market offers in PJM Interconnection.
Distribution, transmission, and state policies identified as major contributors, challenging assumptions about PJM’s recent record capacity auction.
The new rules come as PJM found that more than 20% of loss of load risk occurs in hours outside of the current demand resource availability windows.
The decision establishes a temporary price cap and floor for 2026/2027 and 2027/2028 delivery years, aiming to balance market stability and consumer protection amid rapid load growth and resource retirements.
The proposal would reduce capacity resource deficiency charges to 100% of a resource’s clearing price, shielding sellers from penalties due to lower calculated reliability benefits.
Exorbitant price increases in PJM’s latest capacity auction are projected to cost New Jersey ratepayers $1.7 billion, prompting calls for the investigation.
Constellation argues that including reliability must-run units as price takers distorts market signals, jeopardizes grid stability and disregards commission precedent in New York and New England.
Further delays in the approval of the market reforms could leave up to 3 GW of new resources ineligible for the next capacity commitment period, according to one estimate.
FERC’s ruling affirms MISO’s discretion in how rules are set for measuring resources’ contributions to grid reliability, paving the way for implementation starting in the 2028/2029 planning year.
The coalition warns that inaction could lead to consumer costs more than doubling to a staggering $37 billion in the 2026/2027 auction.
The petition comes after FERC’s most recent review of Dynegy’s market activity is said to turn up evidence of misconduct.
The exclusion of RMR capacity in the 2026/2027 auction could cost consumers as much as $14.5B, OPSI says.
The waiver corrects for an over-procurement of an estimated 1 GW of capacity.
The coalition warns that inaction could lead to consumer costs more than doubling to a staggering $37 billion in the 2026/2027 auction.
