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PJM’s Effective Load Carrying Capability Proposal

On April 30, 2021, the Federal Energy Regulatory Commission (FERC) rejected PJM's proposed Effective Load Carrying Capability (ELCC) transition mechanism, arguing it was "unjust and unreasonable." The proposal aimed to help with changes in capacity by setting "ELCC floor values for resources on a rolling annual basis for 13 years after they enter the PJM capacity market."

Despite being rejected for the transition mechanism portion of the proposal, "PJM’s proposed ELCC construct appeared to be just and reasonable, allocating capacity values to generators using a logical and methodological process that reasonably estimates each generation resource type’s reliability contribution," according to authors Elizabeth McCormick and Katherine O'Konski.

FERC gave PJM the option to file a revised ELCC proposal under Section 205 to continue to keep the paper hearing temporarily suspended. To qualify for this option, "PJM would need to submit its intent by no later than May 14 and would need to make the new Section 205 filing by no later than June 1," according to PJM.

To read more about this, please visit this article. FERC's order may be found here.

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