09/03/2021 - Electricity Law Initiative

Electricity Law Initiative Files in FERC Proceeding about State Clean Energy Policies

The Electricity Law Initiative urged the Federal Energy Regulatory Commission (FERC) to reject generation companies’ and trade associations’ arguments that it must leave in place market rules that hamstring state clean energy policies. At issue in the proceeding is a proposal filed by PJM that seeks to undo FERC’s December 2019 order imposing market rules that make clean energy more expensive.

The Electricity Law Initiative’s comment makes three arguments in response to generators’ initial filings in the proceeding:

1)      FERC is not legally required to adopt any particular market rules addressing market effects of state policies.

2)      FERC s not legally required to prevent one state from encroaching on another state’s sovereignty via market rules.

3)      FERC orders do not create legal rights for market participants that tie FERC’s hands in this proceeding.