In a strong step forward for affordable, reliable and clean energy, a committee at the nation’s largest power grid operator on Wednesday voted overwhelmingly to begin a discussion on how to design and evaluate cost-effective alternatives to running expensive, polluting power plants past their desired close date.
PJM manages the power grid for northern Illinois and all or parts of 12 other states and the District of Columbia. On Wednesday, PJM’s Markets & Reliability Committee voted to launch a process for PJM members (energy industry companies and consumer advocates) to consider how to design and evaluate cost-effective alternatives to expensive reliability must run (RMR) agreements.
RMR agreements are created and managed by PJM whenever they have concerns that a plant closure would hurt grid reliability. With a growing number of uneconomic coal and gas plants reaching retirement, RMRs keep polluting, expensive generators online well past their planned deactivation dates. For example, the proposed RMR for the Brandon Shores coal plant in Maryland was criticized by advocates because it could cost Marylanders around $175 million each year.
The discussion on RMR alternatives will take place in the Deactivation Enhancements Senior Task Force, which was already considering how to revise RMR compensation and deactivation notification timelines.
“This is a vital, necessary discussion that could help us better navigate the energy transition,” said Clara Summers, manager of Consumers for a Better Grid, a CUB project to advocate for consumer interests at PJM. “RMRs are bad for the planet and our bottom lines, and it’s time we start considering alternatives, such as deploying grid-enhancing technologies and energy storage, that can keep the lights on and combat climate change while saving electric customers money. Today’s vote was an excellent step in the right direction–now we can get down to business to design an alternative solution.”
Given the high cost of RMRs, CUB teamed with the Maryland Office of the People’s Counsel to propose an expanded stakeholder process to consider alternatives to RMRs to better protect customers from higher energy costs and harmful pollution while also meeting the needs caused by increased energy demand. This is not a new concept–other grid operators across the country, including in New York and Texas, already have processes to evaluate alternatives to RMRs.
Specifically, the new stakeholder process would discuss procedures to evaluate combinations of generation and transmission technologies as cost-effective alternatives to RMRs. Some of the technologies under consideration include:
“No one likes RMRs–they are expensive, polluting, and they distort the markets,” Summers said. “We are glad that stakeholders have come together and said we want an alternative. This is an exciting example of consumer advocates helping to set the agenda.”
Read Clara Summers’ statement on this development. For more information on advocating for consumer interests at PJM, visit Consumers for a Better Grid’s website.
