A re-defined capacity product, revised parameters for generator performance, and a new role for demand response.
Bruce W. Radford is executive editor of Public Utilities Fortnightly. Reach him at radford@fortnightly.com.
PJM's proposal to reform its regional capacity market - the RPM, or Reliability Pricing Model - is fashioned somewhat on the "Pay for Performance" plan that ISO New England proposed a year ago for its capacity market tariff, the FCM, or Forward Capacity Market (FERC Docket ER14-1050, filed Jan. 17, 2014) and which was approved last year on May 30 by the Federal Energy Regulatory Commission, but only after significant modification (147 FERC ¶61,172).
The PJM plan consists of at least three key parts, though PJM suggests that approval of one is not dependent on another.