PJM Capacity Charge: Old Generation Hanging on Too Long?

Questions rise about when to retire old generation plants. Are the economic signals being clouded by capacity charges?

PJM capacity market draws criticism at US Northeast power conference
New York (Platts)
The PJM Interconnection’s capacity market drew criticism during an industry conference in New York Monday, with some participants citing a tendency to keep old generation capacity online at the expense of potential new plants.

“The RPM market is a complete failure,” Marji Philips, ISO services director for Hess, said at the Platts Northeast Power Markets conference. Philips was referring to the Reliability Pricing Model, which is the…

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