Third Circuit Upholds FERC Orders on PJM MOPR Revisions

Recently, the U.S. Court of Appeals for the Third Circuit upheld FERC’s 2011 orders accepting revisions to PJM’s Minimum Offer Price Rule (“MOPR”) that, among other things, removed the mitigation exemption for resources being developed in response to a state mandate to resolve a projected capacity deficiency.  While sharply criticizing FERC for allowing “sovereign states and private parties to be drawn into making complex and costly investments, only to later pull the rug out from under those who were persuaded that the exemption was somehow real,” the Third Circuit concluded that FERC neither exceeded its jurisdiction nor acted in an arbitrary and capricious manner.

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