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Market Monitoring-Related RPM Materials
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The Reliability Pricing Model (RPM) provides a long-term price signal, consistent with the PJM Regional Transmission Expansion Planning process, for capacity resources and load serving entities’ (LSEs) unforced capacity obligations. Providing sufficient resources ensures the reliability of the PJM region for future years.

The RPM provides:

• support for LSEs using self-supply to satisfy their daily unforced capacity obligations for future years (Self-supply includes resources owned by an LSE or obtained through bilateral transactions.);
• a competitive auction to secure additional capacity resources, demand response and qualifying transmission upgrades to satisfy LSEs’ unforced capacity obligations that are not satisfied through self-supply;
• recognition of the locational value of capacity resources; and
• a backstop mechanism to ensure that sufficient generation, transmission and demand response solutions will be available to preserve system reliability.

In order to assist in understanding RPM and the RPM Auction clearing process the following informational material is being provided:

Note: Following the filing of the original RPM proposal with the Federal Energy Regulatory Commission (FERC), most parties in the proceeding filed an RPM settlement agreement with the FERC, though some opposed the settlement. Information on this page is preliminary and could be altered by the final FERC ruling.