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Over Objection of Retail Suppliers, FERC Grants Complaint To Immediately Reduce Capacity Market Clawback (Peak Energy Rent) In New England

RESA Had Said Such Immediate PER Modification Would Harm Retail Suppliers, Negatively Impact Fixed Price Agreements

FERC granted in part a complaint filed by generators and found that ISO New England's Peak Energy Rent (PER) mechanism, which is a form of capacity market revenue clawback paid to load, is no longer just and reasonable. FERC ordered immediate changes to the PER strike price

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FERC Seeks To Allocate Uplift To Market Participants Who Are "Reasonably Expected" To Have Caused Uplift

Costs To Be Allocated To Entities Which Deviate From Their Day-Ahead Market Schedules

The Federal Energy Regulatory Commission in a NOPR is proposing to revise its regulations to require that each regional transmission organization (RTO) and independent system operator (ISO) that currently allocates the costs of real-time uplift due to deviations shall allocate such real-time uplift…

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FERC Approves $2,000/MWh Hard Offer Cap Which May Set LMPs In All RTOs, Effective (Essentially) Immediately

Uplift Allowed For Costs in Excess of $2,000/MWh FERC Acknowledges Difficulties in Verifying Costs Above $1,000, Subjects Load To Them Anyway

FERC has adopted a hard cap of $2,000/MWh for the energy markets in all the FERC-jurisdictional RTOs, with offers up to $2,000/MWh permitted to set LMP, and offers in excess of $2,000/MWh also permitted but with offers in excess of $2,000/MWh not setting LMP and addressed instead through make-whole…

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