After New Jersey and Maryland proposed to offer contracts to new power plants that would bid into the capacity market, generators and the RTO proposed to beef up that rule last year. FERC accepted those revisions, but three out of the four power plants backed by the two states ended up clearing in the last capacity auction.
Now PJM is starting a stakeholder process to look at changes to the MOPR proposed by generators and public power entities. The new rules would prevent any power plant with a contract from a state like the three that cleared in the last auction from getting an exemption to the MOPR.
The rules would allow "competitive"
The rule won support from public power by offering a clear exemption for its self-supply business model. It also offers exemptions to vertically integrated utilities and plants built to meet a need in the competitive market, such as a large retailer signing a contract with a new power plant.
The proposed changes have the support of suppliers and public power. Both PJM and its independent market monitor have expressed support for the rules as well. But representatives from Maryland and New Jersey have already voiced strong opposition to how the rules came about, which was a series of private discussions by suppliers and public power that later brought in PJM and the market monitor. Representatives of the two states are also unhappy with the way the rules are written.
Get the latest on all sides of the dispute from three key industry experts when you join Restructuring Today for its upcoming webinar "Debating the Minimum Offer Price Rule" on Thursday, December 6, 2012. Call +1-301-769-6812 (1-888-637-7776 toll-free in US and Canada) or visit http://www.restructuringtoday.com/
QUESTIONS THIS IN-DEPTH, 90-MINUTE WEBINAR WILL ANSWER:
* What exactly is in the rules?
* Why were these rules proposed so soon after the MOPR was beefed up?
* How will these rules impact the markets?
* What problems are these rules designed to fix?
* What does this mean for state-backed plants going forward?
* Do any other rules around buyer side market power need fixing?
... and much more.
Joseph Bowring is the president of Monitoring Analytics, LLC. He has been the Independent Market Monitor for PJM Interconnection since 1999, responsible for all aspects of market monitoring. He received his Ph.D. in economics from the University of Massachusetts. He has taught economics as a member of the faculty at Bucknell University and Villanova University. He has served as senior staff economist for the New Jersey Board of Public Utilities and as Chief Economist for the New Jersey Department of the Public Advocate's Division of Rate Counsel. He also worked as an economist at the U.S. Department of Energy, Energy Information Administration and as an independent consulting economist.
Kimberly Frank is an associate at Kaye Scholer with experience in electric regulatory matters and the economics of electricity markets. She represents state regulatory agencies in complex litigation before the Federal Energy Regulatory Commission and in related proceedings before federal courts. She has represented clients in FERC electric market design and rate cases, complaint proceedings, rulemakings and appellate matters arising out of administrative actions. Frank also counsels clients regarding evolving state and federal regulatory issues, including issues related to investment in renewable electric generation and other FERC-jurisdictional matters. She graduated from Georgetown University Law Center in 2004 and also earned a Master's degree in economics from the University of Maryland College Park. Before joining Kaye Scholer, Frank worked for an economics research center at the Department of Economics, University of Maryland College Park.
Edward Tatum is the vice president of RTO & regulatory affairs at Old Dominion Electric Cooperative. He has held a variety of positions since joining Old Dominion Electric Cooperative in 1986. Tatum has actively participated in numerous PJM and MAAC (now Reliability First) committees, work groups and users groups since 2002. He has served as the sector-elected representative on the PJM Finance and Nominating Committees, chair of the PJM Board Liaison Committee and of the PJM Members Committee. Tatum has actively participated in Federal Energy Regulatory Commission activities regarding transmission open access, transmission planning, cost allocation, generation Interconnection, RTO governance and responsiveness, demand response, capacity markets, market structure and market power issues since 1985. Tatum has a Bachelor of Science degree in electrical engineering from the University of Virginia and a MBA from the University of Richmond.
Glen Thomas is president of GT Power Group. He is the former chairman of the Pennsylvania Utility Commission (PUC), where he oversaw the restructuring of Pennsylvania's electricity, natural gas and local telephone markets. Thomas served as deputy director of Governor Ridge's Policy Office where he advised the governor on energy and environmental issues. In addition, he was appointed by California Gov. Arnold Schwarzenegger to serve on the governor's transition team for energy related issues in 2003. Thomas is also a former partner at the law firm of Blank Rome. He currently serves as president of the PJM Power Providers Group, a non-profit organization dedicated to properly designed and well-functioning markets in the PJM region. Thomas received his Juris Doctor from Dickinson School of Law and his Bachelor of Arts in philosophy/religion and political science from Colgate University.
Details about Restructuring Today's "The latest MOPR Proposal” webinar is available at http://www.restructuringtoday.com/
Restructuring Today’s mission is to deliver exclusive news chronicling ongoing efforts to open competitive wholesale and retail energy markets with in-depth analysis on why some fail and others succeed.