Electric Power Supply Association: 3rd Circuit Court Finds in Favor of Power Generators on Capacity Auction Rules

WASHINGTON, March 14 — The Electric Power Supply Association issued the following news release:

The United States Court of Appeals for the 3rd Circuit recently issued a critical decision in defense of competitive market auction rules in the PJM DPL-South case.

The court ruled in favor of appeals from the Electric Power Supply Association (EPSA), the PJM Power Providers Group (P3), NRG Energy, and Constellation Energy Generation. It agreed with EPSA’s position that the Federal Energy Regulatory Commission (FERC) erred in approving a petition from PJM to retroactively revise the terms of a competitive power capacity auction after it identified an anomaly in its initial estimates.

EPSA represents competitive power suppliers owning more than 50,000 MW of generation capacity in PJM.

The court found definitively that PJM violated the Filed Rate Doctrine’s prohibition on retroactive rates when it attempted to change the structure of an…