Fuel flexibility could prove valuable under PJM’s capacity performance system

摘要

PJM Interconnection LLC’s new capacity performance proposal —rnconditionally approved by FERC on June 9 — could benefit co-firedrnor fuel-switching power plants bidding into future PJM capacityrnauctions.rnPJM in December 2014 requested FERC approval on reformsrnto its capacity market, known as the reliability pricing model, orrnRPM, in response to problems the region experienced during thern“arctic blast” in early 2014. The intense cold period drove up energyrnconsumption in the region, ultimately leading power and natural gasrnprices to spike. During this time, PJM also experienced an increase ofrngenerator outages and fuel supply challenges.