Committees & Groups

Issue Details

Prospective Capacity Resource Incentives

To initiate PJM stakeholder assessment of the vitality of RPM in achieving its goal to align capacity pricing with system reliability requirements and to provide transparent information to all market participants far enough in advance for actionable response to the information, consistent with the PJM Regional Transmission Expansion Planning Process (RTEPP). Such assessment must consider whether the current market design unreliably and inequitably promotes prospective sources by providing low-risk opportunities for financial gain inconsistent with PJM’s resource adequacy requirements without sufficient assurance of physical delivery. Matters for consideration include: • Reasons for prospective, or “planned”, resources either to purchase replacement capacity via Incremental Auctions or failure to deliver resources committed in a Base Residual Auction • Current rules for the administration of Incremental Auctions and the opportunity for prospective resources to purchase replacement capacity in the Incremental Auctions to cover prior capacity commitments • Capacity deficiency penalties for committed prospective resources that fail to deliver a physical resource in the relevant delivery year • Credit requirements for prospective resources • Milestones for assessing the progress of prospective resource development, including a comparative assessment of best practices from other RTOs • PJM authority for removing or barring resources that fail to meet development milestones

Proposed Timeline

Issue initiated: 8.1.2013
Work begins: TBD
Target Completion: TBD
Actual Completion: TBD

Issue Details

Stakeholder Body Capacity Senior Task Force
Subject Matter Expert Bastian, Jeff
Problem Statement/
Issue Charge First Read
8.1.2013
Issue Catalyst Exelon
Issue Status Closed
Manual Changes No
Agreement Changes Open Access Transmission Tariff
  • Stakeholder Process Step

  • Completed Approved
  • Completed Education
  • Completed Interest
  • Completed Design
  • Completed Options
  • Completed Packages
  • Completed Consensus
  • Completed Review
  • Completed Completed