Prior to the implementation of the Reliability Pricing Model in 2007, which replaced it, PJM's Capacity Credit Market enabled suppliers to offer and buyers to purchase unforced capacity credits in PJM.

Prospective buyers or sellers of capacity credits submitted confidential buy bids or sell offers indicating the maximum amounts (in megawatts) and prices (dollars/megawatt-day) they were willing to pay or accept for capacity credits for a given period of time. PJM validated and processed the buy bids and sell offers to clear the market at a capacity clearing price.

The required policies and procedures were outlined in the Capacity Credit Market Business Rules (PDF). The Capacity Credit Market was administered by PJM in accordance with the principles and procedures specified in Schedule 11 of the PJM Operating Agreement (PDF).