Glick: New FERC PJM MOPR Order Footnote Suggests That Default Service Auctions Are Subject To MOPR If They Take Into Account State RPS Targets

FERC adopted an order on rehearing and compliance regarding a PJM plan to implement a revised minimum offer price rule (MOPR) in the capacity market

A written order was not immediately issued

During the Commission meeting, FERC Commissioner Richard Glick warned that, in addressing concerns about the MOPR's impact on default service auctions (background here), a footnote in FERC's new order suggests that default service auctions that take into account state RPS targets would be subject to the MOPR, notwithstanding the order's premise that non-discriminatory or fuel-neutral SOS auctions would not be subject to the MOPR

In the compliance filing addressed by FERC's order PJM had proposed to complete all pre-auction activities and open the BRA for the 2022/2023 Delivery Year within six and a half months after the date of the Commission’s acceptance of PJM’s compliance filing.

However, while FERC adopted an order on rehearing and compliance, certain pre-auction activities cannot yet begin due to a still pending FERC decision on the PJM reserves market, which impacts the default offer price floor in the capacity auction.

Docket No. EL16-49 et al.