PJM market monitor pushes capacity market changes to enhance efficiency

Image credit: Flickr; Jes

Image credit: Flickr; Jes

WASHINGTON, DC — “PJM has many constituents, and it is not easy to keep them all happy. A group of electric cooperatives and municipal power providers, for instance, is pushing for a wide ranging reassessment of PJM’s capacity market. They are concerned that PJM’s capacity market gives short shrift to the policy goals of individual states.

PJM has apparently taken those concerns to heart, as the recommendations in the market monitor’s report include changes to PJM’s capacity market.

The report recommends, among other things, that energy efficiency resources be excluded on the supply side of the capacity market because PJM’s load forecasts now account for future energy efficiency, but did not when energy efficiency was first added to the capacity market.

…But environmental groups have also questioned PJM’s market capacity rules and sued the grid operator in July saying the regulations put renewable energy and clean energy at a disadvantage. Conversely, generators have said the capacity market rules do now allow more payment to existing baseload generation, particularly nuclear plants. The CEOs of Dynegy, Exelon and AEP have all told Utility Dive they would push for market protections for those plants as a hedge against cheap natural gas and renewable energy.”

— Peter Maloney, Utility Dive

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