PJM’s New Capacity Market Requirements Spur $250 Million in Investments
Operators of generation units that cleared in PJM’s capacity performance auction for the 2016-17 planning year have spent or are spending about $250 million in response to the new capacity market’s tougher reliability requirements. About half of the investments focused on long-term maintenance to enhance unit longevity, including boiler work, condenser replacements, new equipment installations, and winterization. Firming up fuel supply constituted the second-largest category of work – 29 percent of the generation capacity undergoing investments. These projects included establishing a dual-fuel capability, installing on-site fuel storage, or connecting to a second nearby pipeline.