PJM Submits Second MOPR Compliance Filing

Filing Reflects Extensive Stakeholder Input, Particularly in the Area of State Default Service Procurement


PJM has submitted a second compliance filing regarding capacity market price rules to the Federal Energy Regulatory Commission (FERC), which on April 16, denied rehearing of its Dec. 19 ruling, and required a compliance filing on several areas for which PJM had sought clarification.

FERC’s December order significantly expanded the application of the Minimum Offer Price Rule (MOPR) used in PJM’s capacity market, which previously had applied only to new natural gas-fired resources.

As it did in crafting its initial compliance filing, PJM actively sought stakeholder input. That is reflected in this second compliance filing, particularly in the area of state default service procurement, where PJM revised its proposal after receiving feedback in an effort to achieve relative consensus on the compliance language.

The filing:

  • Proposes that state auctions meeting strict, competitive criteria not be considered a state subsidy
  • Prohibits the replacement of a commitment on a non-subsidized resource with a subsidized resource that is procured via a bilateral transaction
  • Codifies, in the PJM Tariff, the Commission’s intent to keep the existing MOPR applicable to natural gas units intact in its present form while adding the new MOPR addressing subsidized units
  • Specifies how the MOPR floor prices will be applied to resources that offer less than their full capacity value into an auction, or offer only as a summer or winter, or seasonal, resource
  • Consistent with the Commission’s rulings, articulates that only megawatts cleared on a resource would transition from “New” to “Existing” status, while the remaining, uncleared megawatts would remain “New”
  • Consistent with the Commission’s rulings, clarifies that a resource that chooses not to offer for a given delivery year becomes “New” again for future auctions.

PJM will proceed with its proposed implementation of the 2022/2023 Base Residual Auction once FERC approves both of the pending compliance filings.