Ohio, Pennsylvania Protest PJM’s Changes Addressing Subsidized Generation

Ohio and Pennsylvania last week criticized PJM Interconnection‘s proposed update of the minimum offer price rule (MOPR), which aims to ensure that all electricity-generating resources in a region are offered into the wholesale capacity market based on their cost of doing business — not based on cost advantages due to subsidies.

Under PJM’s new proposal, state-subsidized generation would not be subject to MOPR for reasons such as “environmental attributes” or “economic development.”

As reported by Hannah News Service, Ohio and Pennsylvania officials argue their generation is market based — unlike some other states in PJM’s jurisdiction — and that the proposal to exempt renewables and other subsidized energy “unjustly transfers the consequences of a particular state’s policy preference(s) to all states and consumers within the PJM region.” 8/24/2021