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PJM Issues White Paper Seeking Comments on Reliability Backstop Procurement Proposal

Category: PJM
Related Categories: Resource Adequacy

PJM published a proposal to address the need for a Reliability Backstop Procurement.

“PJM’s proposal serves as a transitional mechanism to safeguard resource adequacy, support the Connect and Manage interim posture, and advance reforms to be discussed in the investment incentive work planned for later this year. PJM has received a tremendous amount of feedback from stakeholders on this topic. With that information, and consultation with Charles River Associates (CRA), PJM is putting forth a framework that will allow for bilateral contracting between direct parties followed by a proposed central procurement to acquire the remaining targeted megawatt amount.

PJM is viewing the Reliability Backstop Procurement as a one-time, transitional procurement of capacity designed to begin to address the unprecedented load growth in the region. PJM does not believe the Reliability Backstop Procurement is a long-term fix for its resource adequacy issues. Therefore, in parallel with the Reliability Backstop Procurement, PJM is also undertaking a review of its markets as mentioned in the National Energy Dominance Council within the White House and PJM Governor’s principles1 that articulate a longer-range desire to “Return PJM to Market Fundamentals” and the PJM Board letter2 from January 16th that also instructs PJM staff to undertake a holistic review of investment incentives in PJM’s markets.”

“PJM is looking for formal submissions of information from both the generation and demand side before finalizing the proposed solutions for the RBP. This Request for Information (RFI) will be confidential and seeks information on terms, conditions and criteria in which parties would: (1) enter bilateral contracting and/or (2) participate in a PJM central procurement.

This RFI will be sent out on April 16, 2026, with requested submissions by May 4, 2026.