PJM Interconnection stakeholders on Aug. 23 voted on 18 proposals for capacity market reforms during a special meeting of the PJM Members Committee.
The vote marked the final stage of the accelerated stakeholder process, initiated Feb. 24 by the PJM Board of Managers, to directly address key capacity market areas that directly benefit grid reliability.
That Board action followed up on the research and analysis in the PJM report “Energy Transition in PJM: Resource Retirements, Replacements & Risks,” published in February, that identified trends that would result in shortages of generation capacity if not addressed.
The Board’s launch of the Critical Issue Fast Path-Resource Adequacy process in March cited the report with specific directives to:
- Explore how PJM accounts for reliability-related risk
- Ensure that market-seller offers reflect the risk of capacity obligations
- Enhance resource accreditation
- Better align capacity market and Fixed Resource Requirement rules
The Critical Issue Fast Path stakeholder process “provides an orderly and facilitated process for contentious PJM or FERC issues that are unresolved or extremely difficult to resolve,” PJM said.
The Aug. 23 Member vote is advisory and informs the independent review of the PJM Board. The Board makes the final decision on the elements of a filing currently scheduled to be submitted to the Federal Energy Regulatory Commission by Oct. 1.
A filing by Oct. 1 would be timed to gain FERC approval and implementation of new rules in the 2025/2026 Delivery Year capacity auction, to be held in June 2024.
PJM said it will issue a communication when the Board makes a determination on next steps, including any associated filings at FERC.
