Wholesale Electricity Markets at a Crossroads? Examining PJM Market Designs from the Perspective of the States
Register to join experts, state officials, and stakeholders from across the PJM Interconnect for a one-day workshop on September 28 exploring state energy and environmental policy objectives and what they mean for FERC-regulated wholesale markets. This workshop will feature multiple perspectives on ongoing challenges and recent proposals to make state policies and regional market design work together, including PJM's proposals for a two-tier capacity market or energy market carbon price.
10:00 – 10:30 AM Registration & Coffee
10:30 – 10:40 AM Welcome & Introduction
10:40 – 12:00 State Policy Objectives and What they mean for FERC Regulated Wholesale Markets
What states and electricity consumers demand from the electric system has evolved significantly since the PJM Interconnection was established and the wholesale markets were designed. Many states have sought to increase the amount of renewables on the system or reduce emissions. Still others have acted to protect existing nuclear plants. This panel will examine a range of state policy objectives that fall outside the current market design and how they affect the PJM markets. What objectives do states have that are not reflected the PJM markets? Are some state policies or policy designs more compatible with the markets than others? Are there benefits to designing the markets to protect competitive prices for other resources or to reflect additional state goals?
12:00 – 1:30 Lunch
1:30 – 2:50 State Policies and Regional Market Design: Making it Work Together
PJM, other eastern RTOs, and the Federal Energy Regulatory Commission are actively considering whether and how RTO market design should take state policies into account. The options under consideration range from not taking any state policies into account at one extreme to requiring every state policy to be factored into capacity market bids at the other extreme. The PJM proposal, which falls somewhere between those extremes, has proposed a two-tier capacity pricing mechanism to address some yet-to-be-defined set of state subsidies. This panel will examine PJM’s proposal and consider alternative approaches to make the wholesale markets work better with state policies.
2:50 – 3:10 Break
3:10 – 4:50: PJM’s Proposed Carbon Pricing Framework and Alternative Proposals
PJM has released a proposal entitled “Advancing Zero Emission Objectives through PJM’s Energy Markets,” which provides the general outline of a carbon pricing framework that could apply to the entire footprint or a subregion of PJM states. PJM’s proposal follows concepts floated in the Midcontinent region and later in New England. This panel will explore these proposals. How might a carbon price value attributes that states have sought to advance through state policies? What are the opportunities and challenges with these approaches? How far would they go toward harmonizing RTO markets and state policies?
4:50 – 5:00 Closing Remarks
The workshop is hosted by the Great Plains Institute and the Nicholas Institute for Environmental Policy Solutions.