PJM is currently undergoing a review of key parameters in its Capacity Market as mandated by the PJM Open Access Transmission Tariff (Tariff). Section 5.10 a) of Attachment DD of the PJM Tariff contains requirements for a periodic, on-going assessment of the:
Shape of the VRR Curve, which can affect price stability and the reflection of capacity value beyond the reliability requirement
Cost of New Entry (CONE) which provides pricing points along the VRR Curve based on resources procured
Methodology for determining the Net Energy and Ancillary Services Revenue Offset (E&AS Offset) which is used in combination with CONE for providing pricing points on the VRR Curve