Topics in the text: Cost allocation · Reliability and curtailment
What the document says
Procurement target · PDF pp. 1–4
Updating the procurement target
Market design manager Danielle Croop explains why PJM wants a fresh forecast for the 2028/29 delivery year before setting the target. Her formula uses the smaller of updated need and eligible reported load growth.
utilizing the latest information allows PJM to identify the most accurate estimate of the reliability need PDF p. 3
Cost allocation · PDF pp. 5–6
How distributors' shares are fixed
Croop starts with each area's incremental growth, applies qualifying offsets and peak shaving, then recalculates each area's share. The final proportion stays fixed through the procurement term.
The final pro rata share determination will be fixed for the term of the RBP PDF p. 6
Should the original forecast bind even if load never arrives?
Amazon and Northern Virginia Electric Cooperative · Related public statement
Amazon argued that immutable shares would diverge from actual demand as projects changed. NOVEC asked why PJM considered a single snapshot appropriate.
In Croop's example, offsets of 470 and 94 MW lower a hypothetical 4,000 MW target to 3,436 MW. The corresponding large loads come out of the allocation base. These are example quantities, not procurement results.
This value is purely illustrative for this example and not indicative of the Initial RBP Target for the RBP PDF p. 6
Source sections
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