FERC Approves PJM’s Request To Waive $1,000/MWh Offer Cap
February 13, 2014
The Federal Energy Regulatory Commission approved PJM’s request to waive its $1,000/MWh offer cap through the end of March. The request came after vicious winter weather in January in the Northeast and Mid-Atlantic. Under its approved request, PJM will waive the cap for cost-based day-ahead energy offers for generation resources. FERC said PJM’s proposal met the commission’s criteria for approving waivers, as doing so would remedy a “concrete problem,” would not harm third parties, and would be limited in scope. In its proposal to FERC, PJM said the waiver was necessary to ensure that generation offers reflected marginal costs of the seller. PJM also said the waiver would supersede FERC’s Jan. 24 approval of PJM’s proposal to offer make-whole payments for certain generators submitting above the cap.