PJM to ask board to authorize market design changes

On Jan. 16, 2018, PJM management informed stakeholders that it would recommend to the PJM Board at its February 2018 meeting that it should authorize PJM to file market design changes – Capacity Repricing – with the Federal Energy Regulatory Commission in the first quarter of 2018.

PJM has posted an updated Capacity Repricing paper. Based on stakeholder feedback, the updated paper offers an expanded definition of the design elements of Capacity Repricing.

For more than 12 months, PJM discussed with stakeholders how to address state public policy programs that promote state-specific environmental, social or political objectives through some form of subsidy for generation that participates in PJM’s competitive wholesale electricity markets.

The Capacity Construct/Public Policy Senior Task Force spent more than 20 meeting days during the past six months grappling with this issue.

PJM intends to review the updates to the paper with stakeholders during the January 25, 2018, Markets & Reliability Committee meeting.