Capacity Market Reform Work Statuses

The below table provides a status of the Capacity Market reform effort (phase 2 – issues beyond the MOPR) taking place at the Resource Adequacy Senior Task Force and other stakeholder groups. This information will be updated regularly coinciding with the RASTF publication schedule and work plan.

Capacity Market Reform Issue

KWA – key work activity as outlined in the RASTF Issue Charge

Recommendations

A) Resource Adequacy Senior Task Force (RASTF)
KWA Issue/Topic Progress Status
1

Procurement of Clean Resource Attributes

Determine whether a forward procurement of clean resource attributes should be pursued, and investigate the inclusion of the Social Cost of Carbon in PJM markets.

The RASTF endorsed the procurement of clean resource attribute issue charge that was presented at the RASTF meeting on March 14, 2022. The issue charge was endorsed at the MRC on April 27, 2022. This topic will be addressed in the Clean Attribute Procurement Senior Task Force.

This topic will be addressed in the Clean Attribute Procurement Senior Task Force.
RASTF Key Work Activity Complete
2

Reliability Risk and Risk Drivers

Determine the types of reliability risks and risk drivers to be considered by the capacity market and how they should be accounted for.

Stakeholders have begun the CBIR process on this Key Work Activity and have contributed interests, design components, and options.

Design Components and Options
3

Procurement Metric and Level

Determine the desired procurement metric and level to maintain the desired level of reliability.

Stakeholders have begun the CBIR process on this Key Work Activity and have contributed interests, design components, and options.

Design Components and Options
4

Performance Assessment

Determine the performance expected from a capacity resource.

Stakeholders have begun the CBIR process on this Key Work Activity and have contributed interests, design components, and options.

Interest Identification, Design Components and Options
5

Qualification and Accreditation

Determine the qualification and accreditation of capacity resources.
Stakeholders have begun the CBIR process on this Key Work Activity and have contributed interests, design components, and options. Interest Identification, Design Components and Options
6

Obligations of Capacity Resources

Determine the desired obligations of capacity resources

Stakeholders have begun the CBIR process on this Key Work Activity and have contributed interests, design components, and options.

Interest Identification, Design Components and Options
7

Enhancements to the Capacity Procurement Process

Determine if there are needed enhancements to the capacity procurement process.
Education on this topic is expected to begin in Q3/Q4 2022.  
8

Remaining Design Seasonal Resource Adequacy Construct

As applicable, determine any remaining design details for a seasonal capacity market construct not addressed in other KWAs
Education on Seasonal Capacity has begun and stakeholder presented perspectives on this topic. Education
9

Supply-Side Market Power Mitigation Rules

Determine if supply-side market power mitigation rules in the capacity market need to be enhanced.

The RASTF has begun work on the Market Seller Offer Cap (MSOC) related to this key work activity. MSOC items are intended to focus on targeted issues identified by the group with the current MSOC process and calculations to be addressed as soon as practicable for upcoming RPM auctions.

The RASTF has worked the interests, options, and solution packages stages of the CBIR process.

The MRC did not endorse the narrow MSOC package in a vote at the July MRC.

For the broader MSOC packages, the RASTF endorsed packages A and D, which will move to the MRC with package A as the main motion.

Solution Packages on MSOC
10

Fixed Resource Requirement (FRR) Rules

Determine if the Fixed Resource Requirement (FRR) rules need to be synchronized with any changes made.
Education on this topic is expected to begin in Q3/Q4 2022.  


B) Operating Committee (OC)
Issue/Topic Progress Status

Other Reliability Products and Services
Evaluating the need for PJM’s procurement of additional reliability-based services, with a particular focus on reliability needs in the face of the changing resource portfolio and increased penetration of intermittent resource technologies.

The initial discussion, education, and assessment of reliability products and services has taken place at the OC. A matrix document was developed at the OC to assist stakeholders in making the initial direction determination.

Stakeholders endorsed the initial recommendations at the April OC. Recommendations will be evaluated to ensure they are either in scope of current stakeholder group charters or that an appropriate problem statement/issue charge is developed.

Activity Complete at the OC


C) Markets Implementation Committee (MIC)
Issue/Topic Progress Status
Quadrennial Review

All packages addressing the Quadrennial Review were reviewed at the July MRC meeting. The committee will be asked to provide advisory votes on the proposals at its next meeting. Same day advisory voting will be sought at the August 24, 2022 MRC and Special MC – Quadrennial Review meetings.

 In Progress


D) Load Analysis Subcommittee (LAS)
Issue/Topic Progress Status
Load Analysis

PJM is working with Itron to provide a comprehensive independent review of the long-term load forecast methodology. At the July 28, 2022 LAS meeting Itron shared initial recommendations and received feedback. Itron’s final report will be posted in the next few weeks. The final recommendations will be shared with the Planning Committee in September.

In Progress


F) Planning Committee (PC)
Issue/Topic Progress Status

CIRs for ELCC Resources

Ensure the appropriate application of CIRs to Generation Capacity Resources, with an emphasis on ELCC Resources.

PJM and stakeholders are reviewing and discussing packages for this issue at Special Sessions of the PC.

In Progress


G) Clean Attribute Procurement Senior Task Force (CAPSTF)
Issue/Topic Progress Status

Procurement of Clean Resource Attributes

The Clean Attribute Procurement Senior Task Force had its first meeting on June 3, 2022. The senior task force is in the education and interest-gathering phase of the stakeholder process.

In Progress