Utility Dive•1 day ago
Appeals court vacates FERC decision on PJM capacity results for Delmarva zone
Key Takeaway
This court decision creates regulatory uncertainty and potential cost adjustments in PJM's Delmarva capacity market, impacting both generators' revenue and large consumers' costs.
AI Summary
- •A federal appeals court vacated a FERC decision, ordering a re-evaluation of $183 million in "anomalous" capacity costs within PJM's Delmarva zone (parts of DE, MD, VA).
- •This creates significant regulatory uncertainty for PJM's capacity market, potentially leading to revised market rules or methodologies for determining capacity prices in the affected region.
- •For large power consumers in the Delmarva zone, this ruling could lead to future cost adjustments or even potential refunds for past overcharges, impacting their energy budgets.
- •Developers and IPPs operating or planning projects in PJM's Delmarva zone face increased uncertainty regarding future capacity revenue streams, necessitating close monitoring of FERC's re-evaluation.
Topics
capacity-marketfercpjmpolicy