Capacity Market Reform Work Statuses

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.

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.

Stakeholders are presenting and discussing high-level conceptual designs through Q4 2022 to help inform the continued CBIR solution options and package work (detailed designs) targeted for Q1 2023.

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.

Stakeholders are presenting and discussing high-level conceptual designs through Q4 2022 to help inform the continued CBIR solution options and package work (detailed designs) targeted for Q1 2023.

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.

Stakeholders are presenting and discussing high-level conceptual designs through Q4 2022 to help inform the continued CBIR solution options and package work (detailed designs) targeted for Q1 2023.

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.

Stakeholders are presenting and discussing high-level conceptual designs through Q4 2022 to help inform the continued CBIR solution options and package work (detailed designs) targeted for Q1 2023.

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.

Stakeholders are presenting and discussing high-level conceptual designs through Q4 2022 to help inform the continued CBIR solution options and package work (detailed designs) targeted for Q1 2023.

Enhancements to the Capacity Procurement Process

Determine if there are needed enhancements to the capacity procurement process.

Stakeholders are presenting and discussing high-level conceptual designs through Q4 2022 to help inform the continued CBIR solution options and package work (detailed designs) targeted for Q1 2023.

Remaining Design Seasonal Resource Adequacy Construct

As applicable, determine any remaining design details for a seasonal capacity market construct not addressed in other KWAs.

Stakeholders are presenting and discussing high-level conceptual designs through Q4 2022 to help inform the continued CBIR solution options and package work (detailed designs) targeted for Q1 2023.

High-Level Design Concepts/Solution Options for Seasonal Construct

Supply-Side Market Power Mitigation Rules

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

The RASTF worked on the Market Seller Offer Cap (MSOC) related to this key work activity. MSOC items were 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.

A narrow MSOC package and broader MSOC packages were endorsed by the RASTF, but failed at the MRC.

Stakeholders are presenting and discussing high-level conceptual designs through Q4 2022 to help inform the continued CBIR solution options and package work (detailed designs) targeted for Q1 2023.

Fixed Resource Requirement (FRR) Rules

Determine if the Fixed Resource Requirement (FRR) rules need to be synchronized with any changes made.

Stakeholders will address this Key Work Activity when appropriate to review the FRR rules and synchronize with any changes coming out of the RASTF.

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.

The PJM Quadrennial Review process culminated Sept. 30 with the filing of the PJM proposal approved by the PJM Board of Managers for consideration by the Federal Energy Regulatory Commission.

PJM worked with Itron to provide a comprehensive independent review of the long-term load forecast methodology. At the July 28, 2022 Load Analysis Subcommittee meeting Itron shared initial recommendations and received feedback. Itron’s final report was posted with the LAS materials here. The final recommendations were shared with LAS at the September meeting the Planning Committee in October. PJM reviewed results of implementing a number of recommendations from Itron at the October 27, 2022 meeting. PJM plans to review a preliminary 2023 forecast at the November 29, 2022 LAS meeting and the December 6, 2022 Planning Committee.

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.

Procurement of Clean Resource Attributes

The senior task force has begun working on the solution options phase of CBIR. The group is also discussing the scope, modeling approach, and assumptions for a quantitative analysis (modeling) around various clean attribute market design solutions. It is expected that modeling results will help inform solution package development in Q1 2023.