States' Rights, Gamed Markets
Submitted by meacott on Tue, 2011-04-19 18:03FERC OK's PJM's capacity price floor, but questions remain about 'legitimate interests.'
FERC seems to say that states remain free to interfere with RTO markets.
Citing what it called “mounting evidence of risk” that PJM’s RPM capacity market could indeed “be gamed,” the Federal Energy Regulatory Commission (FERC) last week OK’d most of the tariff amendments PJM had proposed to correct flaws in its Minimum Offer Price Rule (MOPR), which allows the grid operator to mitigate or predatory, below-cost bids by suppliers who would sell generating capacity into the region.