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
