FERC rejects AEP request to sell capacity in upcoming auction

Core Viewpoint - The Federal Energy Regulatory Commission (FERC) rejected a waiver request from American Electric Power (AEP) that would have allowed the sale of up to 750 MW in an upcoming capacity auction, citing adequate capacity in the PJM Interconnection as a reason for the denial [1][2]. Group 1: AEP's Waiver Request - AEP's request aimed to lift a 1,300-MW cap on capacity sales in PJM's market, arguing it would help address resource adequacy needs and reduce fuel charges for customers [3]. - The waiver request was supported by PJM but opposed by Monitoring Analytics and the PJM Power Providers Group, who claimed AEP was attempting to offload excess capacity acquired for unfulfilled data center projects [4]. Group 2: FERC's Decision - FERC's decision indicated that AEP did not demonstrate a need for its capacity to maintain grid reliability, suggesting that AEP's excess capacity was a result of its own business decisions [5]. - AEP expressed disappointment with FERC's ruling, stating it would lead to higher costs for customers and emphasized its commitment to ensuring reliable service and lower capacity prices [6].