Breaking up is hard to do

Source: BY KELSEY TAMBORRINO, Politico • Posted: Tuesday, April 7, 2020

Utilities interested in ditching the power markets may find it harder than they would like, according to a new memo (attached) by utility attorney Ari Peskoe, director of the Electricity Law Initiative at Harvard Law School. FERC’s order last year to PJM Interconnection setting a minimum offer price in its capacity auction, an effort to nullify state subsidies to renewable and nuclear generators that Peskoe opposed, triggered several statewide efforts to consider leaving either PJM or ISO-New England. Peskoe examines recent cases and finds that FERC may have the ability to review — and reject — a utility request to leave its market. “I conclude that withdrawal is legally plausible, but FERC could block withdrawal, and it might be more inclined to do so in response to a protest filed by an ISO-NE transmission owner,” he writes.

 

ISONexit Memo – Peskoe