The Brattle Group has been commissioned to conduct the Quadrennial Review of the Variable Resource Requirement (VRR) curve that PJM uses in its capacity market, the Reliability Pricing Model (RPM). Periodic reviews of VRR curve parameters help ensure that the RPM continues to support reliability objectives cost-effectively even as market fundamentals and technologies change. The present review will inform PJM’s filing establishing the VRR curve for the next four capacity auctions, subject to annual updates. Consistent with the requirements in PJM’s Tariff, our review analyzes the Net Cost of New Entry (Net CONE) and the VRR curve shape.

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