Board Approves RTEP Additions, IRM


The PJM Board of Managers has authorized additions to the Regional Transmission Expansion Plan, which ensures efficient and reliable power supplies for the 65 million people PJM serves. At its meeting Wednesday, the board also approved the Installed Reserve Margin for the next four delivery years.

The RTEP approvals include about $184 million for projects to maintain reliability of the grid. The reliability-related projects include:

  • $4.45 million for three projects in PJM’s Mid-Atlantic Region
  • $129.88 million for 18 projects in PJM’s Western Region
  • $48.93 million for four projects in PJM’s Southern Region

The Board also approved approximately $1.1 billion of network upgrades associated with the interconnection of new generators to the grid. Developers of the new generators pay the interconnection costs for their projects.

Installed Reserve Margin

The PJM Board also approved the recommended Installed Reserve Margin (IRM) for each of the next four capacity delivery years. The IRM and associated parameters help determine the price and amount of capacity procured in PJM’s Reliability Pricing Model capacity auctions. The IRM is based on results from PJM’s annual Reserve Requirement Study.

The IRM is an additional amount of resource capacity above the forecasted peak demand for a year. Having the additional capacity ensures that sufficient resources are available to maintain power supplies if some resources are unavailable or demand for electricity is higher than expected.

The study satisfies requirements to ensure sufficient power supply resources will be available. It also indicates there are no gaps between the needed amount of planning reserves and the projected planning reserves over the 11-year study period.

The approved IRMs are:

  • 16.0 percent IRM for the 2019/2020 delivery year
  • 15.9 percent IRM for the 2020/2021 delivery year
  • 15.8 percent IRM for the 2021/2022 delivery year
  • 15.7 percent IRM for the 2022/2023 delivery year

A slight decrease in the IRM for some years compared to last year’s study is driven by the decrease in the PJM average generator unit size. Other factors being equal, having a greater number of smaller generators improves reliability.

Members had unanimously endorsed the study results.