- Sep 16, 2019 3:57 pm GMT
- 514 views
PJM Power Providers Group President Glen Thomas and EPSA President and CEO Todd A. Snitchler wrote a response to an earlier Utility Dive published article highlighting an August 2019 analysis released by Grid Strategies that found a strong application of the minimum offer price rule (MOPR) by FERC would increase capacity costs in PJM by $5.7 billion, or 60%, annually. However,Todd and Glen claim the analysis fails to consider the costs of the underlying subsidies at issue in the report.
We believe that competitive electricity markets are key to sustainable environmental progress; if the goal is to achieve sustainable carbon reductions, policymakers should consider long-term, economy-wide solutions to a national and global issue instead of high-cost, one-off, temporary fixes.
Reliable Energy Analytics endorses Glen and Todd's position for competitive electricity markets that aim to achieve sustainable carbon reductions [and a reliable electric grid] and their suggestion that policymakers consider a long-term, economy wide solution to a national and global issue instead of high-cost, one-off, temporary fixes. A proposal has been submitted to the North American Energy Standards Board (NAESB) for consideration under the 2020 Annual Plan to create a long-term capacity market exchange to achieve sustainable carbon reductions and ensure a reliable electric grid, as a nation wide solution. A detailed presentation of the proposal is avialble here.