Frequently Asked Questions
Why did I receive this letter?
The power grid operator in your area, PJM Interconnection, is in the process of completing a series of capacity auctions — called Capacity Performance — to improve the reliability of the power grid. This market change will result in increased costs for all electricity suppliers and utilities who sell energy to consumers in PJM.
What is capacity?
Capacity is the maximum electric output that can be produced by a generator at a given time under specific circumstances.
What is a Capacity Performance auction?
The Capacity Performance auction seeks bids from power plants and other demand response and energy efficiency resources for commitments that they will be available to provide electricity at peak demand regardless of weather conditions and other system emergencies.
How does the Capacity Performance auction benefit the market?
Capacity Performance will improve reliability and incent new power plant investments that will reduce power outages and price spikes that occur during extreme weather events.
How will this impact me?
This change in law is expected to result in an increase in your electricity costs beginning in June 2016. The exact impact will not be known until after the final auction results are posted in mid-September.
Does this change impact other suppliers?
Yes. The Capacity Performance auction is increasing the costs for all suppliers and utilities who sell energy to consumers within the PJM Interconnection beginning in June of 2016.
What is PJM?
PJM is the regional transmission organization (RTO) in all or parts of 13 states and the District of Columbia that operates the wholesale electricity market and ensures there is enough electricity supply to reliably meet customer demand. For more details please go to www.pjm.com
Where can find more information on Capacity Performance?