FERC denied rehearings on orders rejecting PJM’s efforts to stop capacity market participants from attempting to arbitrage between the BRA and Incremental Auctions.

FERC has signaled that it’s done dealing with PJM’s concerns about market participants selling “paper capacity” to arbitrage price differences between the Base Residual and Incremental auctions.

PJM’s Independent Market Monitor urged FERC to address longstanding concerns over demand response providers and others selling “paper capacity.”

Still unable to reach consensus, PJM members balked again last week at a request from a group of demand-side stakeholders to revisit Capacity Performance.