Federal Agency Order Threatens Rate-Increases for ComEd Customers to Boost Coal and Gas Companies

Chicago, IL.  - The Federal Energy Regulatory Commission (FERC) instituted a disastrous new rule today that will essentially exclude new renewable energy projects from the PJM capacity market and force ComEd customers to subsidize dirty coal and gas plants, unless Illinois acts in 2020 to prevent the rule from taking effect here. Energy experts predict the decision will cost the Midwest, Appalachia, and Mid-Atlantic regions almost $6 billion annually and increase dangerous fossil fuel emissions. 

The new rule, known as the Minimum Offer Price Rule (MOPR), was approved 2-1 by Trump appointees to FERC. The rule aims to slow the growth of clean energy by requiring new renewable resources from ambitious state climate policies--like Illinois’ Future Energy Jobs Act-- to offer into PJM’s capacity market at artificially elevated prices, while forcing consumers to subsidize aging coal and unnecessary new fracked gas plants. The MOPR would essentially nullify most state incentives for clean energy resources and require consumers to buy fossil-fuel capacity that they neither want nor need. 

The new rule does allow states to opt out of the cost increases and the focus on fossil fuels if they can adopt an alternative in 2020. The Clean Energy Jobs Act, supported by nearly a majority of the Illinois General Assembly, would protect consumers from the new rule by creating a new capacity market for Illinois that reduces cost and prioritizes carbon-free sources of energy.

In response, Jack Darin, Sierra Club Illinois Director, released the following statement: 

“FERC has just leveled a tremendous threat to derail Illinois’ growing clean energy economy, and our progress in reducing dangerous carbon emissions from fossil fuels. Fortunately, Illinois can choose to stay on track to a clean energy future and block this rule from taking effect here, but only if we act next Spring. The Clean Energy Jobs Act will protect consumers from FERC’s proposed rate hike, and set Illinois on course for 100% clean energy. It is critical for the Illinois legislature to take decisive action in the next legislative session to make sure we put communities and consumers first, and not follow Washginton in putting fossil fuel profits over Illinois families and climate action.”