POWER CAPACITY AUCTION RULES

Urges the Federal Energy Regulatory Commission, the Illinois Commerce Commission, and the Illinois Power Agency to independently review the PJM Interconnection LLC and Midwest Independent System Operator capacity auction rules and market design and determine why the rules and market design have not protected Illinois ratepayers from significant increases, investigate whether all auction rules were followed in the most recent PJM and MISO auctions and, if so, to determine whether additional protections are necessary to ensure to protect ratepayers from excessive rates and charges, and independently investigate whether market power was exercised by any auction participants, including the withholding of certain generation assets intended to drive up the clearing price, and whether the market design for capacity auctions allows for the exercise of market power. Urges the Illinois Commerce Commission and the Illinois Power Agency to participate in Federal Energy Regulatory Commission proceedings that will address the design and operation of the capacity market planning processes and auction practices utilized by PJM and MISO and to promote policies in those proceedings that will ensure greater transparency, prevent the exercise of market power by bidders, and to deliver capacity resources to Illinois consumers at the lowest and most stable prices.