The Impact of PJM Capacity and Reliability Pricing Models
May 21, 2013
The Pennsylvania, Jersey, Maryland Interconnection, or PJM, is the world’s largest and most advanced regional transmission organization (RTO), creating a powerful market served by various retailers with access to market-based, competitively priced wholesale power. PJM, is similar to most RTOs, other than the Electric Reliability Council of Texas (ERCOT), who has a forward capacity market known as the Reliability Pricing Model, or RPM. Energy users who can manage their energy costs need to understand the impact that RPM has on their overall energy cost.
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