- Feb 28, 2020 2:48 pm GMT
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PJM is passing on the "carbon pricing" option to suggest another way to work with States to achieve state energy policies as part of their market responsibilities. This is a very significant decision that will shape the future of wholesale markets - if FERC authorizes this approach. Key excerpts from PJM's announcement are below.
States are increasingly active in choosing their own energy policy and shaping their own energy future. They have their own priorities, and they want a say in their energy mix. Some, like Virginia, West Virginia and Indiana, plan for and regulate the generation that is built in their state. Others try to encourage the building of certain resources – such as renewables – or to keep coal or nuclear plants from closing.
PJM believes there are ways to integrate state policies without compromising the integrity of a market that saves consumers billions of dollars a year. Furthermore, there is so much value that PJM can continue to offer to states via our planning and operations functions.
PJM is asking the Commission to provide greater flexibility for PJM to accommodate state energy policies and integrated utility decisions. Our filing also requests that FERC expressly encourage PJM and its stakeholders to work on long-term proposals that preserve the balance between federal and state interests.
PJM has a vast body of knowledge in planning, markets and operations to offer our stakeholders. Our message to states is: Let us help you advance your energy policy initiatives.