Utility Dive•24 days ago
FERC urged to reject AEP waiver request for PJM capacity sale
Key Takeaway
FERC's decision on AEP's waiver request will impact how utilities procure and manage capacity for large loads, setting a precedent for market stability and risk allocation in PJM.
AI Summary
- •AEP utilities are seeking a FERC waiver to sell PJM capacity originally acquired for data centers that ultimately did not materialize.
- •Monitoring Analytics and the PJM Power Providers Group oppose the waiver, arguing it could distort the capacity market and create unfair advantages.
- •This situation highlights the significant risks for large power consumers (e.g., data centers) and developers in accurately forecasting demand and securing long-term capacity.
- •FERC's decision will set a precedent for how utilities manage speculative capacity acquisitions and their potential impact on PJM's capacity market dynamics.
Topics
capacity-marketdatacenterfercpjmpolicy