Due to the non-performance of committed Synchronized Reserve resources during Synchronized Reserve Events since the implementation of Reserve Price Formation (October 1, 2022) and to maintain compliance with NERC Standards, effective from May 19, 2023, PJM carried an additional 30% on the Reliability requirement component of Synchronized and Primary reserve in the RTO only in the Day-Ahead, and Real-time Markets for all hours. Effective January 9, 2026 instead of 30% PJM will carry an additional 20% on the Reliability requirement component of Synchronized and Primary reserve in the RTO only in the Day-Ahead, and Real-time Markets for all hours until further notice.
For example (rounded to whole MW): If the largest single contingency = 1,630 MW
Default (100% of largest contingency)
Synchronized Reserve requirement: 1,630*1 + 190 = 1,820 MW
Primary Reserve requirement: 1,630*1.5 + 190 = 2,635 MW
30-Minute Reserve requirement: Max(3,000, gas contingency, PR reliability) + 190 = 3,190 MW
Increased reliability by 20%
Synchronized Reserve requirement: 1,630*1.2 + 190 = 2,146 MW
Primary Reserve requirement: 1,630*1.2*1.5 + 190 = 3,124 MW
30-Minute Reserve requirement: Max(3,000, gas contingency, PR reliability) + 190 = 3000 + 190 = 3,190 MW
If you have any questions regarding this message, please contact PJM Customer Service at (866) 400-8980 or send an email to custsvc@pjm.com. Thank you.