FERC decision on PJM mitigation is a model for other ISOs and RTOs.
Richard B. Miller is the director and Raghu Sudhakara is a project specialist with the Energy Markets Policy Group at Con Edison.
Capacity markets have been a significant source of controversy since the inception of competitive wholesale markets. While there are many regulatory questions to be answered in constructing capacity markets, the primary goal of such markets should be to attract capacity that is competitively priced. Achieving this goal has been difficult, and Con Edison welcomes the Federal Energy Regulatory Commission’s (FERC) recent decision to hold a technical conference “to consider how current centralized capacity market rules and structures are supporting the procurement and retention of resources necessary to meet future reliability and operational needs.”1