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.
See PJM’s Summary Proposal here: https://www.pjm.com/-/media/committees-groups/cifp-mopr/2021/20210630/20210630-cifp-mopr-pjm-proposal.ashx