On June 18, 2020, McDermott partners Neil Levy and David
Tewksbury were joined by Paul M. Sotkiewicz, PhD, of E-Cubed Policy
Associates, LLC, to discuss recent developments in the markets
operated by PJM Interconnection (PJM).
Below are key takeaways from this week's webinar.
- In December 2019, the US Federal Energy Regulatory Commission
(FERC) issued an order requiring PJM to expand its Minimum Offer
Price Rule (MOPR). Under the expanded MOPR, a capacity resource
that receives a state subsidy will be subject to a minimum offer
floor price in PJM's capacity auctions, unless it is entitled
to one of the exemptions set forth by FERC.
- The expanded MOPR is not expected to have significant impacts
on the results of PJM's capacity auctions, particularly in the
near term. There are at least three reasons for this: First, there
are various exemptions to the expanded MOPR, including, but not
limited to, exemptions for existing renewable resources, as well as
for
