PJM board approves near-term reserve margin of 16.6%

The PJM Interconnection board of directors on Dec. 7 approved the 2016 Installed Reserve Margin (IRM) Study results of 16.6% for 2017-18, which is slightly higher than the existing reserve margin.

The vote was reported in a Dec. 7 PJM publication that was posted online.

The study results re-set the reserve margin for the delivery years of 2017/18, 2018/19, 2019/20 and establish the initial IRM for 2020/21.The study examines the 11-year planning horizon, from June 1, 2016, through May 31, 2027.

Based on the annual IRM results, PJM recommended a 16.6% IRM for the 2017/2018, 2019/2020 and 2020/2021 Delivery Years and a 16.7% IRM for the 2018/2019 Delivery Year.

The 16.6% IRM for 2020/2021 calculated in this year’s study represents an increase of 0.1 percentage points with respect to the IRM computed for 2019/2020 in last year’s study. The mild increase can be attributed to changes in the PJM load model which this year features a flatter monthly peak shape, more specifically a higher August-to-July peak ratio.

The PJM Board at its Dec. 7 meeting also approved changes of almost $260m to the Regional Transmission Expansion Plan to incorporate both baseline and network upgrade changes.


About Wayne Barber 4201 Articles
Wayne Barber, Chief Analyst for the GenerationHub, has been covering power generation, energy and natural resources issues at national publications for more than 20 years. Prior to joining PennWell he was editor of Generation Markets Week at SNL Financial for nine years. He has also worked as a business journalist at both McGraw-Hill and Financial Times Energy. Wayne also worked as a newspaper reporter for several years. During his career has visited nuclear reactors and coal mines as well as coal and natural gas power plants. Wayne can be reached at wayneb@pennwell.com.