FERC lets PJM delay next capacity auction from May to August 2019
PJM’s capacity auction delay sets up a high-stakes battle this fall over the rules governing the largest electricity market in the U.S.
Last month, state members of the Mid-Atlantic electricity market asked FERC to revisit its June decision invalidating capacity auction rules. FERC ruled that state energy policies, like nuclear subsidies or renewable energy mandates, are suppressing capacity prices, but Maryland, Illinois and New Jersey argued the decision overstepped the federal agency’s legal jurisdiction.
FERC gave no indication in its Aug. 30 order of whether it would grant those requests for rehearing, but its decision to delay the auction and filing deadlines likely means that it will not make a final decision on market rules before the end of the year.
Debate over the market changes will likely turn on the issue of state policies.,,,