(Bloomberg) -- Chocolate giant Hershey Co. is the latest company to raise concerns over federal changes to how electricity is priced in the country's biggest power market.
Hershey complained on Wednesday that its climate goals are being hindered by the Federal Energy Regulatory Commission, which recently ordered PJM Interconnection LLC, the largest U.S. grid operator, to overhaul its massive electricity auction. The new rules offer a leg-up to fossil-fuel generators while suppressing incentives for renewable energy.
Prior to the ruling, Hershey was finalizing a long-term agreement to purchase renewable power in Pennsylvania, but the rule change scuttled the deal, the company said.
“FERC's decision, as it stands today, has effectively stalled our project and negatively impacted our ability to finalize this agreement,” Hershey said in a letter to the agency. “This decision impedes our ability to meet our environmental goals and meet the expectations set by our consumers and investors.”
PJM has also asked the energy commission to reconsider the rule change, saying it would disrupt operations and undermine the clean energy policies of states across the eastern U.S.
To contact the reporter on this story: Stephen Cunningham in Washington at scunningha10@bloomberg.net
To contact the editors responsible for this story: David Marino at dmarino4@bloomberg.net, Catherine Traywick, Joe Carroll
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