U.S. Electricity Trading Group Files Petition in Federal Court of Appeals Regarding PJM MOPR

Strong points

EPSA, others seek to reverse MOPR

FERC could act once Phillips is sworn in

With the U.S. Federal Energy Regulatory Commission not acting on PJM Interconnection’s capacity market reform filing because commissioners were divided on the legality of the change, power producer trade groups asked a federal appeals court to intervene.

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The Electric Power Supply Association filed a petition for review with the United States Court of Appeals for the Third Circuit located in Philadelphia late Nov. 29 regarding FERC’s inability to act with respect to the proposed changes. to PJM’s Minimum Bid Price Rule, or MOPR, the Merchant Generators Trade Group said in a Nov. 30 email.

“FERC’s inaction regarding PJM Interconnection’s July 30, 2021 filing proposing rule changes in the nation’s largest electricity market must be reversed,” said Todd Snitchler, President and CEO of PJM Interconnection. ‘EPSA.

“EPSA intends to take appropriate legal action to achieve this goal and remedy the unjust and unreasonable rate provisions allowed to take effect by operation of law by FERC,” Snitchler said.

A deadlocked FERC failed to act within 60 days on PJM’s proposed replacement of MOPR’s controversial rule targeting state-subsidized clean energy resources, allowing the filing to become effective as of right.

The 13-state grid operator filed the replacement proposal (ER21-2582) on July 30 in a lengthy process over how to account for the potential price impacts of different clean energy policies states on the wholesale electricity market.

FERC also did not respond to requests for a rehearing of MOPR’s decision, meaning the requests were effectively denied.

FERC said Nov. 29 that in the absence of commission action on requests for rehearing within 30 days of filing, “the requests for rehearing may be deemed to have been denied.”

Legal test

PJM Power Providers Group is also seeking judicial review in the United States Court of Appeals for the 3rd Circuit (#21-3068). The cases could provide the first legal test for a special section of the Federal Power Act designed to resolve disputes over FERC orders that automatically take effect because the commission is deadlocked.

EPSA filed its own petition, however, Snitchler said EPSA “is working with other petitioners whose interests [and membership] significantly overlap with ours. »

EPSA filed in the 3rd Circuit because of its “familiarity with these matters and its demonstrated expertise in market-related matters” and it’s also the circuit where PJM is domiciled, Snitchler said.

Additionally, on Nov. 16, the U.S. Senate confirmed that Willie Phillips would be FERC’s fifth commissioner, giving Democrats a 3-2 majority in the top regulator for the first time under the Biden administration.

Once Phillips is officially sworn in, FERC could issue a PJM MOPR procedural order.


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