FERC rule could stifle renewable energy growth, push energy prices up
The Federal Energy Regulatory Commission directed PJM Interconnection in December to create an artificial price floor for clean energy sources like wind, solar, and nuclear.
PJM provides electricity to 65 million customers across the Northeast, Mid-Atlantic, and Midwest—including Virginia.
Rep. Abigail Spanberger, D-Va., has joined a bicameral effort to prevent increased energy rates for consumers and limit constraints on growth within Virginia’s clean energy market.
In a letter sent to PJM President and CEO Manu Asthana, Spanberger and 20 of her colleagues called on PJM Interconnection President and CEO Manu Asthana to delay PJM’s annual capacity auctions, so that states can take steps to mitigate the expansion of FERC’s Minimum Offer Price Rule (MOPR).
This delay would give states additional time to analyze how FERC’s decision will impact consumers.
In part, the letter reads: “According to FERC Commissioner Richard Glick, who opposes the MOPR, this rule will push clean energy generation out of the PJM capacity market and artificially restrict energy supply. The result will be increased costs in the market by at least $2.4 billion annually. Our concern is that these costs will be borne by the most vulnerable among us.”
The bicameral letter is led by U.S. Sen. Tammy Duckworth, D-Ill., Rep. Cheri Bustos, D-Ill.