PJM Interconnection, L.L.C (PJM) retained The Brattle Group (Brattle) and Sargent & Lundy (S&L) to review the Cost of New Entry (CONE) parameters and other elements of the Reliability Pricing Model (RPM), as required periodically under PJM’s tariff.1 This report presents our estimates of the CONE parameters for consideration by PJM and stakeholders in advance of their upcoming capacity auctions. Our review of the other elements of RPM is presented separately, in a concurrently released report, the “Third Triennial Review of PJM’s Variable Resource Requirement Curve” (“2014 VRR Report”).

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