Utility Dive•22 days ago
PJM’s crisis has a simple solution: Copy what works in regulated states
Key Takeaway
The PJM competitive market's failure during a demand shock highlights significant reliability and price risks for developers and large consumers, potentially leading to calls for fundamental policy shifts towards regulated models.
AI Summary
- •PJM's competitive market failed during a significant demand shock, leading to 'chaos' and failing to deliver on its promise of lower prices.
- •The article proposes that PJM should adopt successful strategies from regulated states to resolve its market crisis.
- •This suggests a potential shift in PJM's market design, which could impact future investment signals, operational predictability, and risk profiles for developers and large power consumers.
Topics
capacity-marketpjmpolicy