PJM yesterday proposed sweeping changes to the capacity market, including a new product, to address winter reliability concerns.

PJM rule changes since last year’s auction resulted in reductions in cleared generation imports and demand response. The mix of DR that cleared also changed, with more annual resources and less summer-only.

The 2017/2018 capacity auction cleared at $120/MW-day in most of PJM as restrictions on demand response and imports doubled prices in Virginia, West Virginia, North Carolina and much of Ohio. Prices were essentially flat in the East.

The 2017/2018 capacity auction cleared at $120/MW-day in most of PJM as restrictions on demand response and imports doubled prices in Virginia, West Virginia, North Carolina and much of Ohio. Prices were essentially flat in the East.

FERC approved PJM’s proposal to cap the amount of Limited and Extended Summer demand response that clears in the annual base capacity auction, an action expected to increase capacity prices.

With two new types of demand response about to be introduced, PJM members last week took steps to clarify rules on substitutions and maintenance outages for the products.