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Expert Analysis

The Future Of State-Subsidized Electric Generation Resources

By Joseph Cavicchi and Kenneth Grant (August 20, 2018, 11:54 AM EDT) -- In facing what PJM Interconnection has described as "a growing incidence of resources receiving out-of-market state revenues," PJM asked the Federal Energy Regulatory Commission to consider two potential changes to its capacity market auction tariff.[1] PJM's favored change accommodated all resources receiving out-of-market subsidies, while its proposed alternative change accommodated some resources receiving subsidies while penalizing others. FERC rejected both of PJM's proposals and, at the same time, found PJM's current capacity market auction tariff to be unjust and unreasonable.[2]...

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