PJM and Stakeholders Proceed on Comprehensive Capacity Market Reform

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PJM and its stakeholders are continuing work on comprehensive capacity market reform and beyond in the newly created Resource Adequacy Senior Task Force (RASTF), which had its charter (PDF) recently approved by the Markets & Reliability Committee and met for the first time Oct. 22.

This work follows successful stakeholder collaboration earlier this year on the Minimum Offer Price Rule. Overwhelmingly endorsed by stakeholders, approved by the PJM Board of Managers, and filed for Federal Energy Regulatory Commission review in July, the new Minimum Offer Price Rule design reforms became effective via operation of law Sept. 29.

The draft issue charge (PDF) reviewed at the RASTF kickoff meeting addressed the remaining topics identified during nine Capacity Market Workshops this year and by the PJM Board of Managers.

Work conducted by the RASTF and elsewhere within PJM’s stakeholder process would include consideration of the following topics:

  • Capacity Resource Qualification and Accreditation
  • Obligations and Performance Requirements of Capacity Resources
  • All Aspects Surrounding Capacity Procurement Levels
  • Fixed Resource Requirement Rules
  • Seller-Side Market Power Mitigation Rules in the Capacity Market
  • Procurement of Clean Resource Attributes
  • Procurement of Additional Reliability Based Services

The RASTF will serve as a clearinghouse for all efforts on the resource adequacy front, including issues being worked on in the Operating Committee, Market Implementation Committee and Load Analysis Subcommittee, among others. Stakeholders will be able to follow all progress in a dashboard that will be posted on the RASTF page.

Key work activities are expected to begin in the RASTF next month. In all, proposed solutions for topics may be advanced alone or in tandem with others, at the members’ discretion, for consideration by the Markets & Reliability Committee.