FERC Capacity Auction Orders for Energy Prices Slashed on Appeal

The Federal Energy Regulatory Commission on Tuesday failed to preserve its orders declining to modify the results of a utility’s capacity auction that led to higher electricity rates.

The US energy regulator cited a Third Circuit ruling in its decision not to order PJM Interconnection LLC to modify the tariff related to the auction as requested by PJM customers and state agencies. But the order from the US Court of Appeals for the Third Circuit wasn’t a “sound basis for FERC to deny relief,” the US Court of Appeals for the DC Circuit said.

PJM, a regional grid ...