“The sole Democratic commissioner says Republican majority plan will “nullify” state clean energy policies and predicts legal challenges.”
“After more than a year of delay, the two-Republican majority at the Federal Energy Regulatory Commission has told mid-Atlantic grid operator PJM how it must revamp its $10-billion-per-year capacity market. And at first glance, it could be even more harmful to state-subsidized renewable energy than previously imagined.
Thursday’s order would force almost all future state-subsidized resources in PJM's 11-state territory to use a “minimum offer price rule,” or MOPR, that would limit how low they can bid. Because almost all state subsidies and incentives are for zero-marginal-cost clean energy, this would create an artificial floor that masks their true cost-effectiveness — and essentially forces them out of the market — compared to existing coal, nuclear and gas-fired generation, critics say.
And unlike FERC’s June 2018 order that found PJM's capacity market in need of reform, Thursday’s order has removed some of the few openings for state-subsidized resources to continue to earn money for their capacity value, according to Commissioner Richard Glick, the sole Democrat at FERC.”