As policymakers in states including New Jersey, Maryland, and Illinois consider exiting PJM Interconnection’s capacity market to pursue clean energy goals, they should look to Virginia as a cautionary tale. Alternatives such as the Fixed Resource Requirement (FRR) come with stark consequences for power customers and questionable environmental gains.
Power prices in PJM were the lowest on record in 2019 and emissions have decreased by 34% since 2005 without mandates or requirements to produce clean energy. Why the rush to abandon a successful system for an option that PJM’s Independent Market Monitor estimates would raise costs in Maryland and Illinois to the tune of $200-400 million?
