FE · 10-Q · 2026Q1 · Full report
PJM Capacity Market Reforms
FIRSTENERGY CORP · 2026-04-28 · Importance 40 · Surprise 42
A Statement of Principles released January 16, 2026 seeks to increase capacity in PJM and PJM is soliciting stakeholder input on mechanisms including a backstop capacity auction, price caps, term and quantity, and extension of the existing price collar. FirstEnergy filed comments asking FERC to set a lower price collar than PJM proposed. On April 10, 2026 PJM announced a backstop reliability procurement of up to 14.8 GW in two phases (Sept 2026–Mar 2027 and Mar 2027–Sept 2027) and plans tariff amendments in June 2026 seeking FERC authorization by September 2026. FirstEnergy is participating in stakeholder and FERC processes, which could affect capacity procurement, resource mix and opportunities for bilateral deals with load or EDC‑conducted procurements.
Key facts
- On April 10, 2026 PJM announced a backstop reliability procurement of up to 14.8 gigawatts of new resources to be procured in two phases: phase one from September 2026 through March 2027 facilitating bilateral contracts between resource developers and load, and phase two from March 2027 through September 2027 consisting of PJM procuring new resources on behalf of EDCs that have agreed for PJM to conduct the procurement; PJM plans to file necessary tariff amendments in June 2026 and is seeking FERC authorization by September 2026.
- FirstEnergy filed comments on March 22, 2026 at FERC asking that FERC set the PJM price collar at a level lower than proposed in PJM’s filing and is participating in stakeholder processes related to the Statement of Principles.
- On January 16, 2026, the Trump administration and the governors of all thirteen PJM states released a Statement of Principles Regarding PJM designed to increase capacity available in the PJM market and PJM is seeking stakeholder input on measures including a backstop capacity auction, price cap and term, and whether to extend the existing capacity auction price collar.
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| revenue | unclear | contingent | — | On April 10, 2026 PJM announced a backstop reliability procurement of up to 14.8 gigawatts of new resources to be procured in two phases:… |
| revenue | unclear | contingent | — | FirstEnergy filed comments on March 22, 2026 at FERC asking that FERC set the PJM price collar at a level lower than proposed in PJM’s… |