Clean Energy May Get a Boost in PJM

WASHINGTON  – PJM, the regional grid operator for 13 states in the mid-Atlantic and Midwest, moved today to make a dramatic change to its capacity markets that would end discrimination against clean energy sources.

The proposal to undo the most harmful aspects of the so-called Minimum Offer Price Rule, or MOPR, comes after state leaders threatened to back out of the PJM-administrated market as the grid operator had undermined states' authority over energy policy.

The following is a statement from Tom Rutigliano, an advocate with the Sustainable FERC Project which is housed at NRDC (Natural Resources Defense Council):

“States across the mid-Atlantic are moving to cut carbon pollution in their electricity sector, and this proposal from PJM would allow clean energy to compete with dirty fossil fuel plants. This is a welcome change of direction for the grid operator, correcting its overreach and recognizing state authority over energy decision making.

“If it comes down to a choice between addressing climate change and participating in capacity markets, state leaders can and should choose confronting the climate crisis. This proposal would help side-step that choice and allow clean energy to thrive in the region.”

But, PJM can and should go further. For more on the voluntary market mechanism that would provide a sustainable solution to the problem of the MOPR, please see this blog from Tom.

NRDC (Natural Resources Defense Council) is an international nonprofit environmental organization with more than 3 million members and online activists. Since 1970, our lawyers, scientists, and other environmental specialists have worked to protect the world's natural resources, public health, and the environment. NRDC has offices in New York City, Washington, D.C., Los Angeles, San Francisco, Chicago, Bozeman, MT, and Beijing. Visit us at www.nrdc.org and follow us on Twitter @NRDC.