June 10, 2025

PJM’s market watchdog opposes a plan to scrap capacity market penalties tied to revised grid reliability calculations

The market monitor says the proposal would remove incentives for replacement capacity, potentially impacting reliability and raising costs for consumers.

Challenge to PJM Filing: Monitoring Analytics LLC, the independent market monitor (IMM) for PJM Interconnection LLC, is opposing a plan by the grid operator to eliminate the daily deficiency charge penalty for capacity resources. The IMM argues that this change would undermine market incentives and impose costs on consumers. Reliability & Cost Concerns: The IMM contends that PJM's proposal would ...

Details:

Filing Date: June 9, 2025

Docket Numbers:

ER25-2002

Short Summary:

Monitoring Analytics LLC, the independent market monitor (IMM) for PJM Interconnection LLC, is opposing a plan by the grid operator to eliminate the daily deficiency charge penalty for capacity resources. The IMM argues that this change would undermine market incentives and impose costs on consumers.

Impact Level:

Categories:

Policies & Rulemakings

Tags: Capacity Market, Effective Load Carrying Capability (ELCC)

Entities: Independent Market Monitor

Markets: PJM Interconnection (PJM)

Regions: Mid-Atlantic & Midwest

States:

Regulators: FERC

Courts:

Documents:

Capacity Market Deficiency Charges – Tariff Amendment – Anser