Understanding FERC’s Order Rejecting PJM’s Capacity Market Proposals and the Proposed Replacement Framework
Jennifer Chen, senior counsel at Duke University's Nicholas Institute for Environmental Policy Solutions, writes about how the Federal Energy Regulatory Commission (FERC) recently ordered changes to PJM's capacity market rules. FERC's 3-2 decision rejected two proposals filed by PJM as well as a proposal filed by a group of generators operating in PJM's footprint about how PJM's capacity market should handle state policies favoring certain types of power generation. PJM, states, and other stakeholders now have the opportunity to comment on and shape FERC's proposed replacement framework. Chen discusses the order, the proposed replacement framework, and dissects what FERC might consider as they move forward.