PJM Members Vote on Capacity Market Reform Proposals

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PJM stakeholders completed Stage 4 of the Critical Issue Fast Path – Resource Adequacy process with a vote on 18 proposals for capacity market reforms during a special meeting of the Members Committee on Aug. 23.

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 follows up on the research and analysis in the PJM report “Energy Transition in PJM: Resource Retirements, Replacements & Risks,” (PDF) published in February, that identified trends that would result in shortages of generation capacity if not addressed. The Board’s launch of the CIFP 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 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.

Voting Results

Voting results of all 18 proposals are listed below in the order the votes were taken.

ProposalSector-weighted Vote (out of 5)
PJM #1 – seasonal proposal1.236
PJM #2 – annual proposal2.052
Independent Market Monitor (IMM) #1 – status quo with temporary PAI changes
Daymark/East Kentucky Power Cooperative (EKPC) #1 – status quo with temporary PAI changes
American Municipal Power (AMP)/J-Power #1 – transition
2.801
IMM #2 – sustainable capacity market (SCM) proposal1.695
IMM #3 – hourly component of SCM proposal1.868
Daymark/EKPC #2 – complete capacity reform proposal0.247
Daymark/EKPC #3 – risk modeling refinement and penalty changes proposal0.298
AMP/J-Power #2 – staggered filing proposal1.972
AMP/J-Power #3 – phase 1 only proposal1.879
Buckeye Power #1 – seasonal proposal1.168
Buckeye Power #2 – annual proposal1.654
Vistra proposal0.696
Consumer Package proposal1.250
Capacity Coalition 2 (Leeward Energy/AES) proposal1.014
LS Power proposal #10.413
LS Power #2 – annual proposal0.501
Constellation #1 – seasonal proposal0.161
Constellation #2 – annual proposal0.200

Voting results will also be posted on the CIFP-RA page.

PJM will issue a communication when the Board makes a determination on next steps, including any associated filings at FERC.

PJM’s capacity market, or Reliability Pricing Model, ensures long-term grid reliability by securing the appropriate quantity of power supply resources required to meet predicted, future energy needs. The CIFP stakeholder process provides an orderly and facilitated process for contentious PJM or FERC issues that are unresolved or extremely difficult to resolve.