Munis, co-ops to propose revamp of PJM’s capacity market structure
PJM’s RPM went into effect in 2007, the result of lengthy negotiations between grid stakeholders and a settlement in front of federal regulators. It has since been modified two dozen times in the intervening years as market conditions changed, and now a group of public power suppliers want to undertake a broad reconsideration of how it functions.
“PJM and the stakeholder community need to embark on a comprehensive and holistic assessment of RPM and alternative resource adequacy constructs that, in concert with the energy, ancillary services markets and shortage pricing, would be more resilient in the face of constant change,” according to American Municipal Power’s problem statement.
According to RTO Insider, the coalition supporting the statement includes AMP, Delaware Municipal Electric Corp., Old Dominion Electric Cooperative, the PJM Public Power Coalition, and the Public Power Association of New Jersey. Importantly, Dominion Virginia Power and retail provider Direct Energy have also signed on.