On November 28, 2014, the Commission conditionally accepted PJM
Interconnection's ("PJM") proposed modifications to
several of the key pricing elements used to clear PJM's
capacity market auctions, subject to PJM making a compliance filing
removing a proposal relating to location-specific price elements.
The Commission found that these changes were reasonably needed for
PJM to achieve an acceptable level of reliability over the
long-term.
On September 25, 2014, PJM submitted revisions to its Open
Access Transmission Tariff ("OATT"), proposing to change:
1) its capacity market demand curve, referred to as the Variable
Resource Requirement ("VRR") Curve; and 2) several cost
inputs for the VRR Curve, including the costs of new entry
("CONE") by a representative new power plant. Notably,
PJM did not propose modifications to the energy and ancillary
services ("EAS") revenues that such a plant would be
expected to earn through its participation in PJM. These two
