Core Viewpoint - Independent power producers and PJM's market monitor are urging the Federal Energy Regulatory Commission (FERC) to reject a waiver request from American Electric Power (AEP) utilities to sell up to 750 MW in an upcoming incremental capacity auction [1][2]. Group 1: AEP Utilities' Request - AEP utilities, including Appalachian Power, Indiana Michigan Power, Kentucky Power, and Wheeling Power, seek to offload capacity acquired for data centers that did not materialize [2]. - The AEP utilities requested a waiver from Fixed Resource Requirement (FRR) rules to sell up to 750 MW in an incremental auction scheduled for February 24, 2026, for the 2026/2027 delivery year [3]. - PJM typically conducts annual base capacity auctions three years in advance, followed by incremental auctions to adjust for changes in supply and demand forecasts [3]. Group 2: Justifications and Support - AEP argues that PJM needs more capacity and that their offer in the incremental auction would help lower capacity prices, benefiting ratepayers [4]. - PJM supports the waiver request, stating it would alleviate resource adequacy concerns for the upcoming capacity year [4]. Group 3: Opposition and Concerns - Monitoring Analytics and the PJM Power Providers Group argue that AEP's request does not meet FERC's standards for issuing waivers to approved rules [5]. - They contend that the waiver would allow generators with guaranteed cost recovery to undercut the capacity market, which is detrimental to competitive investment [6]. - The request is seen as setting a precedent that could undermine the PJM market design [6].