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FERC Rejects Waiver Request Allowing Utility to Sell Excess Capacity in Capacity Auction
On February 2, 2026 FERC issued an order rejecting the American Electric Power (AEP) waiver request that would have allowed AEP to sell up to 750 MW in an upcoming “incremental” capacity auction.
Among other things AEP argued that the requested waiver may help to relieve PJM’s resource adequacy constraints while reducing customer fuel charges. However, FERC seemed to agree with parties opposed to the waiver request who alleged AEP was simply trying to sell excess capacity including excess load not used by data centers.
Moreover, FERC said that AEP’s request failed to address a concrete problem because the PJM Interconnection has adequate capacity for the incremental auction across most of its footprint, the commission
In its order FERC said, “AEP’s remaining problem is simply that AEP finds itself with excess capacity … because of its own business decisions that led to the procurement of more capacity than it needed.”
