April 24, 2025

FERC approves PJM capacity market price collar, resolving complaint with Pennsylvania governor

The decision establishes a temporary price cap and floor for 2026/2027 and 2027/2028 delivery years, aiming to balance market stability and consumer protection amid rapid load growth and resource retirements.

Green Light: FERC has accepted PJM Interconnection LLC's proposal to implement a price cap and a floor for its upcoming capacity market auctions, concluding that the revisions were a balanced, time-limited approach to address rapid load growth, generator retirements, and slow new entry, according to an April 21 order. The approval of the price collar resolves a complaint by the ...

Details:

Filing Date: April 21, 2025

Docket Numbers:

ER25-1357

Short Summary:

FERC has accepted PJM Interconnection LLC’s proposal to implement a price cap and a floor for its upcoming capacity market auctions, concluding that the revisions were a balanced, time-limited approach to address rapid load growth, generator retirements, and slow new entry, according to an April 21 order. The approval of the price collar resolves a complaint by the Pennsylvania governor over concerns that the original auction parameters failed to properly account for changing market conditions.

Impact Level:

Categories:

Policies & Rulemakings

Tags: Capacity Market, Protests, Ratepayer Impacts

Entities: PJM Interconnection

Markets: PJM Interconnection (PJM)

Regions: Mid-Atlantic & Midwest

States:

Regulators: FERC

Courts:

Documents:

Capacity Market – Tariff Amendment – Order Approving