Three AGs Reject Energy Market Proposals That Would Raise Power Prices for Consumers and Discriminate Against State Clean Energy Policies

Washington, D.C.— Three state Attorneys General joined a coalition of officials from five states in filing comments yesterday with the Federal Energy Regulatory Commission (FERC) opposing PJM Interconnection’s (PJM) costly proposals for reshaping the wholesale electricity capacity market. PJM’s proposals, if approved, would increase consumers’ utility bills for all consumers in the PJM territory, especially impacting those states that have proactively supported clean energy development through state programs – such as renewable portfolio standards – without improving reliability.

PJM is a regional transmission organization that operates the wholesale electricity market in all or parts of twelve states and the District of Columbia, ensuring that there is sufficient electricity to meet future needs through a competitive auction process – the capacity market – in which energy providers promise to supply a specified amount of electricity at a specified price.

In their filing, the state AGs from Illinois, Kentucky and Delaware and consumer advocates from five other states noted that these recent PJM proposals to FERC – while done in the name of ensuring reliability – “would prevent states from ensuring that the generators that serve their residents” provide energy that meets state-specific environmental requirements, including “state renewable portfolio standards [that] enjoy broad public support” and that reflect, more generally, “the accelerating market trend demanding low-emissions resources.”

“The states’ submission underscores the imperative that FERC fully respect both state clean energy policies, and consumer costs, when setting market rules,” said David J. Hayes, Executive Director of the State Energy and Environmental Impact Center. “Here, both interests line up perfectly in favor of the status quo, and against PJM’s proposed market manipulations.”

Joining Attorney General Madigan in filing comments were the Attorney General of Delaware, Attorney General of Kentucky, Illinois Citizens Utility Board, Delaware Division of the Public Advocate, West Virginia Consumer Advocate Division and Indiana Office of Utility Consumer Counselor.

BACKGROUND
Since January 2017, state attorneys general have taken nearly 100 actions to advance and defend progressive clean energy, climate and environmental laws and policies. View all actions on the State Energy & Environmental Impact Center’s online hub.

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About the State Energy & Environmental Impact Center:
The State Energy & Environmental Impact Center at NYU School of Law is a nonpartisan academic center at NYU School of Law. The Center is dedicated to working towards a healthy and safe environment, guided by inclusive and equitable principles. The Center studies and supports the work of state attorneys general (AGs) in defending, enforcing, and promoting strong laws and policies in the areas of climate, environmental justice, environmental protection, and clean energy.