Reliability Pricing Model
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TrendsPJM Capacity Auction Prices Surge Over Nine-Fold, Signal Urgent Need for New Power Generation
Prices at PJM Interconnection’s 2025/2026 base residual auction (BRA) spiked to $269.92/MW-day for most resources in the wholesale power market, pointing to a tightening supply-demand balance that could have significant implications for the regional transmission organization (RTO). The 2025/2026 BRA—a competitive capacity auction that procures power supply resources in advance of the delivery year to […]
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Legal & RegulatoryPJM Capacity Market Reforms Shake Up Resource Accreditation, Impose New Offer and Testing Requirements
The Federal Energy Regulatory Commission (FERC), in Docket No. ER24-99-000, recently approved a suite of tariff revisions submitted by PJM intended to “accommodate the energy transition while maintaining resource adequacy.” Although the reforms affect many aspects of PJM’s Reliability Pricing Model (RPM), this commentary highlights: The transition from capacity accreditation using Equivalent Demand Forced Outage […]