Ohio Resolution Urges Preservation of Rule to Deny State-Subsidized Generation

Last month, Ohio and Pennsylvania regulators criticized PJM Interconnection’s proposed update of its minimum offer price rule (MOPR) — originally created to address unfair advantages caused by state subsidies for electricity generators that participate in the grid operator’s wholesale capacity market. Under PJM’s new proposal, state-subsidized generation would not be subject to MOPR for reasons such as “environmental attributes” or “economic development.”

Now state Sen. Mark Romanchuk (R-Ontario) has offered Senate Resolution 175, urging PJM and the Federal Energy Regulatory Commission (FERC) to preserve the original intent of the MOPR to ensure that electricity customers in states like Ohio aren’t forced to bear increased costs caused by subsidies “associated with other states’ generation resource preferences.” The OMA this week offered its support for SR 175. 9/15/2021