The new Capacity Performance market rules require load reductions for capacity compliance to be determined with a customer baseline during the non-summer months. Load reductions during the summer months did not change and
are still determined relative to the individual customer’s PLC (Peak Load Contribution) which translates to a FSL (firm service level) approach. The new rule helps to ensure customers with low non-summer load provide load reductions during the non-summer months instead simply maintaining their typical non-summer load profile.
The customer baseline test requirement adopted under Capacity Performance will require significant effort from market participants for limited value. It requires an RRMSE test for all CP Load Management registrations prior to the Delivery Year. The RRMSE test requires 2 months of load data for a customer, every time the customer will be registered as a Load Management resource. The RRMSE test requirement was unintentional and PJM had initially expected to leverage the approach adopted by the DRS prior to EPSA to measure emergency energy load reductions for non-summer capacity compliance.