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Issues In Focus


PJM transitions to a capacity performance design
 
The bitter cold of the 2014 polar vortex made it clear to PJM that more needed to done to maintain reliability in the region. As electric demand surged, the grid struggled to keep up, a problem made worse as many generators faced unplanned outages because of the extreme weather.

Since then, the grid operator has been adjusting its rules to ensure that the grid has adequate supplies even in face of extreme conditions. Under its capacity performance design, capacity performance resources that bid into its capacity auction must meet enhanced performance criteria each year instead of only during the summer. Power plants with better performance that can meet the criteria can receive credits, while non-performers face charges for failing to run.

Looking ahead, all plants that wish to quality as a capacity resource will have to meet the new rules in the 2017 Base Residual Auction procuring capacity for the 2020/2021 delivery year.

 


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