PJM proposes FERC rule changes to recognize key generators, baseload generation attributes

In testimony before the House Subcommittee on Energy, Vice President of Federal Government Policy at PJM Interconnection Craig Glazer discussed proposed rule changes to “better recognize the attributes” of key generators including baseload generation.

Glazer proposed changes to the Federal Energy Regulatory Commission’s (FERC) price formation rules. Glazer also said that PJM is working with stakeholders to continue to accommodate state environmental policy goals.

“PJM believes this very narrow and targeted reform would help to ensure that all generators, even those which have come to be referred to as ‘baseload’ generation, are treated fairly in the marketplace,” Glazer said in his written testimony. “As part of this package of reforms, PJM has proposed development of a new load following product that would incent the development of new innovative and flexible resources (including wind resources) needed to meet varying load demands throughout the operating day.”

Baseload generation, Glazer said, traditionally includes nuclear and coal but today can also include natural gas.

Glazer also encouraged regulators to allow for “market-based solutions.”

“For policymakers to simply try to ‘outguess’ the market or supplant it with their particular policy choice is simply a recipe for building an unsustainable market outcome that no investor would seriously consider and for which no consumer would ultimately benefit,” Glazer said.