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6/30/2008
The Brattle Group Analyzes PJM’s Capacity Market Results and Recommends Changes
The Brattle Group has completed its study of the Reliability Pricing Model (RPM), the capacity market in the PJM Interconnection region. Brattle was commissioned to analyze the first five RPM base residual auctions and assess whether the RPM is achieving its stated intentions and to recommend possible modifications to the RPM. The RPM is meant to ensure that electricity providers have enough capacity to reliably serve the 51 million consumers in the PJM region.
The report, entitled “Review of PJM’s Reliability Pricing Model,” makes several conclusions about the RPM results to date and suggests various changes to the model to increase effectiveness and efficiency.
The executive summary and full report can be found below.
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