PJM to introduce new generator capacity performance standards for energy producers

PJM, the regional transmission organization (RTO) that manages the electrical grid for 13 states, is asking energy producers to increase generator capacity performance to ensure power is available in times of emergency.

As a regional RTO, PJM is responsible for moving electricity over large interstate areas. PJM coordinates, controls and monitors the electricity transmission grid for Delaware, Illinois, Indiana, Kentucky, Maryland, Michigan, New Jersey, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, West Virginia and the District of Columbia.

As the organization responsible for getting energy from producers out to consumers, PJM is seeking to get those producers to have a sufficient amount of energy-creating resources standing ready to meet peak electrical demand.

On top of that, PJM is going to require that those producers have a reserve margin of anywhere from 15 to 20 percent above peak demand.

PJM says this move is critical for ensuring enough electrical capacity especially as intermittent and renewable sources take up more of the energy producing market.

The RTO has been working with the Federal Energy Regulatory Commission (FERC) as well as state and local lawmakers to set new market rules that would require energy producers meet greater generator capacity performance standards.

PJM will phase the newly reformed regulations over the next few years.