FERC Targets State Clean Energy Subsidies With Market Order

Law360 (December 19, 2019, 3:58 PM EST) -- A divided Federal Energy Regulatory Commission on Thursday said state-subsidized power producers must hit a price floor to participate in wholesale electricity auctions run by the nation's largest regional grid operator.

FERC ordered PJM Interconnection, which oversees the grid in 13 Mid-Atlantic and Midwest states and Washington, D.C., to expand its Minimum Offer Price Rule, or MOPR, to cover electricity generators that receive state subsidies. Critics say FERC's move unlawfully trumps state authority to push for cleaner energy sources.

The electricity industry had been eagerly awaiting FERC action on PJM's proposed revisions to its MOPR, which establishes the minimum prices power...

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