PJM is dead. Long live PJM. If you already know about capacity markets, skip to the secret ending at 26:15. Otherwise, hope you enjoy the episode! And to future me listening back - remember VRR curve for demand.

Timestamps:

• 00:00-Intro
• 02:00-Hello and Goodbye
• 03:10-Fundamentals Start Here
• 05:10-Restructuring the Market

• 06:15-Basic NERC Reliability Standard
• 07:15-Market Power and Price Caps
• 10:00-Probability of Reliable Capacity (ICAP, ELCC, UCAP)
• 12:00-Balancing payment with penalties
• 13:00-Data Centers
• 17:45-Renewables and Capacity
• 18:00-Epilogue
• 22:40-Complications in Responsibility
• 24:00-PJM IS DEAD, Long Live PJM
• 25:10-Capacity Markets are All Made Up
• 26:15-Secret ending

Suggested reading:

• Analysis of the 2026/2027 RPM Base Residual Auction (October, 2025)

For reliability standards - look up EUE; LOLH; and LOLE all coming together for risk. Bidding rules - look up MOPR for old utilities that owned a lot of generation but had a ton of customer demand, so they underbid their capacity to distort the price and save money on consumer purchases. For accreditation - look up EFORd and ELCC will probably be changed in the future, so check out slice of day vs seasonal vs marginal and so on.