FERC Handed Partial Win in Challenge to PJM Electric Approvals

July 9, 2021, 6:49 PM

The Federal Energy Regulatory Commission properly approved PJM Interconnection LLC’s plan to use combustion turbine plants as part of its electric capacity estimates, even though combustion turbine plants may be more costly for consumers, the D.C. Circuit ruled Friday.

PJM does a yearly auction where electricity suppliers offer an amount of capacity at a specific price. The auction uses a Variable Resource Requirement Curve to determine the prices consumers should pay for capacity. The VRR curve uses a net cost of new entry input, which is how much revenue a new generator—called a “reference resource"—would need to earn to justify ...

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