Keeping the Lights On
What's it all about? We pay power generators for "capacity"--the obligation to have enough reserve power on hand when demand is highest. But PJM uses a year-round, one-size-fits-all approach to manage this electric capacity market. We urge PJM to take a seasonal approach to capacity procurement.
Why should consumers care? The current one-size-fits-all approach is costly to consumers, and doesn't promote reliability. On the other hand, if done right, a seasonal approach to capacity procurement could yield hundreds of millions in cost benefits to consumers while prioritizing a more seasonally-reliable electricity mix.
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