FERC Order On State Clean Energy Subsidies Roils Markets

The Federal Energy Regulatory Commission (FERC) ordered for PJM Interconnection LLC—which oversees the power grids of 13 Midwest and mid-Atlantic states and Washington, D.C.—to rewrite its wholesale electricity market rules. According to Law360, FERC watchers agree that this decision to curtail the effects of state clean energy policies will only further inflame state-federal tensions over electricity policy and could possibly threaten the future of the markets.

"I think FERC had the best intentions of trying to address a very complex issue, but I'm afraid ... that it may not have forestalled this moment of truth for capacity markets," said Partner Mark Kalpin, who represents both traditional and renewable energy developers. "If anything, it may have pushed us one step closer."

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