PJM States Propose Four Core Principles For PJM Markets, Resource Adequacy
January 11, 2021 Email This Story Copyright 2010-21 EnergyChoiceMatters.com
Reporting by Paul Ring • email@example.com
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The Organization of PJM States, Inc. (OPSI) wrote to PJM's board of managers with a recommendation for "four core
principles" concerning resource adequacy and the PJM markets
"While OPSI understands the need for PJM to move forward with base residual auctions, we also
look forward to an urgent and constructive dialog with PJM about immediate concerns as well as
'what’s next' for resource adequacy across the PJM footprint," OPSI said in the letter
OPSI recommended, "four core
principles to guide discussion about the evolution of market design in the PJM region," including:
1. "State procurements or competitive solicitations, policy choices, emissions levels, or clean
energy requirements must be respected and accommodated, rather than over-ridden or
made infeasible by PJM market rules."
2. "States should have the option of specifying the clean energy, emission levels, or other
content of their own resource mix, in whole or in part, which the PJM market would then
account for or procure on a competitive, least-cost basis, consistent with reliability."
3. "Because states retain primary authority for resource adequacy under the Federal Power Act,
any re-imagined resource adequacy solution must continue to allow states the option of
meeting resource adequacy through a mechanism independently, similar to the current
Fixed Resource Requirement."
4. "Effective and appropriate market power mitigation is imperative for a properly functioning
market design, and for PJM-administered markets generally."
"These principles are critical to the long-term success of the PJM market and should form the
cornerstones of a concentrated effort to recast the future of resource adequacy in PJM," OPSI said
States in support of the OPSI letter include: Delaware PSC;
PSC of District of Columbia; Indiana URC; Kentucky PSC; Maryland PSC; Michigan PSC; New Jersey BPU; North
Carolina UC; PUC of Ohio; Pennsylvania PUC; Tennessee PUC; Virginia SCC; and PSC of West Virginia. The Illinois Commerce Commission voted 'nay' on the matter