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Clean Energy Sector Disappointed in FERC’s MOPR Decision

Thursday, Apr 16 2020

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Press Release

WASHINGTON, D.C. — The Federal Energy Regulatory Commission (FERC) today largely rejected the clean energy sector’s Request for Rehearing on its order to impose a Minimum Offer Price Rule (MOPR) in the PJM capacity market. While clarifying that voluntary RECs are not considered by the Commission to be a state subsidy, FERC otherwise affirmed its December 2019 decision.

In their January joint Request for Rehearing, Advanced Energy Economy (AEE), the American Council on Renewable Energy (ACORE), the American Wind Energy Association (AWEA) and the Solar Energy Industries Association (SEIA) said they strongly oppose instituting the MOPR because it unjustifiably interferes with state decisions to bring low-cost and reliable clean energy to their communities.

Following are statements in response to today’s decision:

Katherine Gensler, Vice President of Regulatory Affairs, Solar Energy Industries Association:

“In largely rejecting this rehearing request, FERC is undermining PJM’s competitive market and is standing in the way of states’ ability to choose low-cost clean energy. We were pleased that FERC preserves the opportunity for voluntary REC contracts. MOPR is a wrongheaded policy, but markets do need certainty. We again urge FERC to act quickly to approve PJM’s recent compliance filing and restore annual capacity market auctions.”

Jeff Dennis, Managing Director and General Counsel, Advanced Energy Economy:

“FERC’s decision to deny rehearing will only increase the growing tension and costly misalignment between state clean energy policies and federally regulated wholesale markets. This decision reaffirms the misguided position that the states’ lawful exercise of their authority to regulate in-state generation facilities and the environmental impacts of power sector emissions must be ‘mitigated’ rather than accommodated. As states and consumers continue to choose advanced energy technologies to meet their clean energy and environmental goals, FERC should turn its attention to ensuring that the wholesale markets reflect these legitimate choices, rather than seeking to exclude them.”

Gregory Wetstone, President and CEO, American Council on Renewable Energy:

“This is a deeply disappointing decision that undermines state policies designed to accelerate the transition to pollution-free, renewable power. While we are encouraged by today’s acknowledgement that voluntary RECs are an appropriate market tool, these last-minute clarifications only highlight the lack of reasoned decision-making behind the MOPR. FERC is financially penalizing American consumers for the clean energy they want and deserve to bail out increasingly uneconomic fossil fuel generators. As a result, we will be exploring our options to ensure that state policies are respected and renewable deployment moves forward.”

Amy Farrell, Senior Vice President, Government & Public Affairs, American Wind Energy Association:

“This decision intrudes on states’ authority to determine the fuel mix within their own borders, undermining policies aimed at moving toward a cleaner, more cost-effective, and more reliable electric system for their residents. While we remain opposed to the MOPR, we are hopeful that FERC will approve the pending PJM MOPR compliance filing, which better recognizes the important value that renewable energy can provide in a competitive capacity market.”

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About SEIA®: 

The Solar Energy Industries Association® (SEIA) is leading the transformation to a clean energy economy, creating the framework for solar to achieve 20% of U.S. electricity generation by 2030. SEIA works with its 1,000 member companies and other strategic partners to fight for policies that create jobs in every community and shape fair market rules that promote competition and the growth of reliable, low-cost solar power. Founded in 1974, SEIA is a national trade association building a comprehensive vision for the Solar+ Decade through research, education and advocacy. Visit SEIA online at www.seia.org.

About ACORE:

Founded in 2001, the American Council on Renewable Energy (ACORE) is the nation’s premier pan-renewable organization uniting finance, policy and technology to accelerate the transition to a renewable energy economy. For more information, please visit www.acore.org.

About AEE:

Advanced Energy Economy (AEE) is a national association of businesses that are making the energy we use secure, clean, and affordable. Advanced energy encompasses a broad range of products and services that constitute the best available technologies for meeting energy needs today and tomorrow. AEE’s mission is to transform public policy to enable rapid growth of advanced energy businesses. Engaged at the federal level and in more than a dozen states around the country, AEE represents more than 100 companies in the $238 billion U.S. advanced energy industry, which employs 3.5 million U.S. workers. Learn more at www.aee.net, track the latest news @AEEnet.

About AWEA:

AWEA is the national trade association for the U.S. wind industry, the largest source of renewable energy in the country. We represent 1,000 member companies, 120,000 jobs in the U.S. economy, and a nationwide workforce located across all 50 states, AWEA serves as a powerful voice for how wind works for America. Members include global leaders in wind power and energy development, turbine manufacturing, and component and service suppliers. They gather each year at the Western Hemisphere’s largest wind energy event, the AWEA WINDPOWER Conference & Exhibition, next in Indianapolis, June 7-10, 2021. WINDPOWER 2021 will be housed within CLEANPOWER, the new exhibition hub for utility-scale renewable energy, bringing together wind power, solar power, and energy storage industries. Visit AWEA’s website to learn more about the enormous economic benefits wind power brings to America and be sure to follow us on Facebook, Twitter, and LinkedIn.

Media Contact: 

Morgan Lyons (SEIA) mlyons@seia.org | (202) 556-2872 (o)

Alex Hobson (ACORE) hobson@acore.org | 202.777.7584 (o) | 202.594.0706 (c)

Monique Hanis (AEE) mhanis@aee.net | 202-391-0884 (o)

Stacey Kerans (AWEA) skerans@awea.org | 202. 383.2525 (o)

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