Haque Addresses PA House and Senate Committees on Capacity Market Reform

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PJM Vice President of State and Member Services Asim Haque visited the Pennsylvania House and Senate in separate sessions Sept. 27 and 28 to share details of PJM’s proposal to amend the rules of the PJM capacity market.

PJM’s July 30 petition before the Federal Energy Regulatory Commission (FERC) would change the capacity market’s Minimum Offer Price Rule to accommodate state policy and self-supply business models, address attempted exercises of buyer-side market power, and create a sustainable market design by keeping clearing prices consistent with supply-and-demand fundamentals.

The PJM capacity market, or Reliability Pricing Model, helps ensure that PJM has enough capacity to meet electricity demand three years into the future. It represents about 20% of the total wholesale cost of electricity.

The substance of PJM’s proposal to FERC achieved stakeholder consensus under a unique, accelerated stakeholder process, called the Critical Issue Fast Path (CIFP), which is an alternative to the normal stakeholder process designed to expeditiously resolve issues that are contentious or time-sensitive.

“Reliability is job number 1, and we remain committed to market-based solutions,” Haque told the House Environmental Resources and Energy Committee on Sept. 27. “PJM will continue to partner with Pennsylvania to maintain world-class system reliability and effective markets as our industry evolves,” he noted in closing. Haque also addressed MOPR before the Senate’s Environmental Resources and Energy Committee on Sept. 28