No later than every fourth Delivery Year, PJM will perform a review of: (1) the shape of the VRR Curve, (2) the Cost of New Entry (CONE) for each LDA, and (3) the methodology for determining the Net Energy and Ancillary Services Revenue Offset (EAS Offset) for the PJM Region and for each Zone. Based on the results of such review, PJM shall prepare a recommendation to either modify or retain the existing VRR Curve shape, CONE and EAS Offset methodology. Based on this timing, PJM is initiating this review with the expectation that any resulting reforms will be implemented no later than the Delivery Year that commences June 1, 2026. The first auction for that Delivery Year is scheduled to be executed in July 2023.
Further information on the components for each of the items to be reviewed can be found in the OATT, Attachment DD, Section 5.10: Auction Clearing Requirements and PJM Manual 18: PJM Capacity Market.