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PJM Board of Managers Approves MOPR Proposal

On July 8, 2021, PJM Interconnection’s Board of Managers approved a proposal aimed at addressing aspects of the Minimum Offer Price Rule (MOPR) in the PJM capacity market.

PJM’s Proposal Overview and Objective states: “PJM proposes to clearly define Buyer-Side Market Power (BSMP) and to prohibit and mitigate the exercise of BSMP through the minimum offer price rule (MOPR) and/or referral to FERC[.]”

The Proposal further states: “In addition, PJM proposes to further clarify the actions of a state (or subdivision thereof) which may improperly interfere with bidding in PJM’s capacity market and FERC’s rate-making authority[.]”

The decision came at the conclusion of PJM’s Critical Issue Fast Path (CIFP) accelerated stakeholder process. Of the nine proposals presented, the approved proposal received the highest sector-weighted vote.


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