capacity markets

American Electric Power (AEP) subsidiary Indiana Michigan Power (I&M) has filed a special customer-specific contract with technology giant Google that could create a dual-purpose arrangement to address power capacity constraints in one of the fastest-growing digital infrastructure regions in the U.S. AEP on Aug. 4 announced that the two companies filed a petition to the […]

Seven major U.S. grid operators have raised a unified alarm about an impending capacity crunch, warning that the pace and scale of explosive demand—including from data centers, manufacturing, and electrification—pose a precarious misalignment with accelerating generator retirements and transmission constraints. At a March 25 hearing before the House Energy and Commerce Subcommittee on Energy, the […]

Energy experts have called for bold reforms—from transmission planning to permitting streamlining and faster interconnection approvals—to prevent further volatility and ensure PJM Interconnection meets its reliability mandate without disproportionately burdening consumers. During a March 19 webinar hosted by Advanced Energy United—a trade group that advocates for policies supporting the transition to 100% clean energy—industry experts […]

PJM Interconnection and Pennsylvania Governor Josh Shapiro have settled a lawsuit over PJM’s capacity market pricing, agreeing to lower the grid operator’s auction price cap from over $500/MW-day to $325/MW-day. The move comes as PJM acknowledges a capacity shortage could affect its system as early as the 2026/2027 delivery year. The agreement announced on Jan. […]

Few observers outside the electric utility industry understand the U.S. power grid, often called the world’s largest machine. It’s three grids, actually—the Eastern Interconnect, the Western Interconnect, and the Texas Interconnect. Much of the Eastern and Western Interconnects are subdivided regionally into independent organizations—independent system operators (ISOs) or regional transmission operators (RTOs)—that monitor, coordinate, and […]

The PJM Interconnection’s Minimum Offer Price Rule (MOPR) was introduced in 2006 as a floor to bar new generators from artificially depressing capacity auction clearing prices through below-cost bids.

In a 3–2 decision, the Federal Energy Regulatory Commission (FERC) rejected approaches filed by PJM Interconnection to reform its capacity market, whose integrity and effectiveness has been increasingly and “untenably threatened” by state subsidies for preferred generation resources, the federal regulatory body acknowledged. The June 29 order sharply divided the commission, prompting Democrat Commissioners Cheryl LaFleur […]

The Midcontinent Independent System Operator’s (MISO’s) geographic footprint extends down the middle of the U.S. Because of the structure of its market, MISO has artfully avoided some nasty policy and

From its modest origins as a way to shed load when the grid is stressed, demand response (DR) has grown to be a significant player in electricity markets. In the PJM region, demand response has accounted for as much as 14,833 MW of capacity, almost 10% of the total. Customer Gains and Generator Losses Demand […]

The effects of the January 2014 polar vortex have led to big changes in the PJM capacity market, as the board has approved changes to tighten up operations and improve reliability. The polar vortex storm of Jan. 6–8, 2014, saw temperatures plunge across the Midwest and Mid-Atlantic, causing a spike in demand for electricity and […]

Geographically and politically, Texas and Germany are on opposite sides of the world, but both believe strongly in competitive energy markets, and both have largely deregulated their power industries. Now both are reconsidering their market designs. Its easy to think that Germany and Texas could not be more different. One is northern, cold, and Old […]