PJM capacity market construct is 'elephant in the room' for states at NARUC

摘要

Regulators in the states that fall within the PJM Interconnection's footprint might agree that the grid operator's capacity market design is failing, but they have not yet reached a clear consensus on what any replacement or modification should look like. PJM's ongoing efforts to protect its market-based capacity construct from the impacts of out-of-market state subsidies was a focus of discussion during the National Association of Regulatory Utility Commissioners' 2018 annual meeting in Orlando, Florida, on Monday. Illinois Commerce Commissioner John Rosales called out "the elephant in the room," slamming PJM's "inherently flawed and unnecessarily complex" capacity market construct for failing to send appropriate price signals to ensure a proper generation mix.