PJM’s capacity market, called the Reliability Pricing Model, developed in 2007, ensures long-term grid reliability by procuring power supply resources needed to meet predicted energy demand three years in the future.
In 2015 and 2016, states initiatives resulted in challenges to the capacity market construct. Complaints were filed at both the state and federal levels, and PJM and affected parties have asked for various levels of relief ranging from imposing the Minimum Offer Price Rule (MOPR) on existing generation to requiring PJM to make a compliance filing to address this problem, to dismissing the complaints altogether. As such, PJM stakeholders would like to proactively embark on an assessment of RPM, to ensure that the current market construct and potential state public policy initiatives are aligned.