PJM maps three pathways to reshape its capacity market

PJM Interconnection proposed three broad frameworks to reform its markets to ensure adequate future power supplies: Path A would stabilize the capacity market with long-term contracts, Path B would formalize reliability differentiation across customer classes or regions, and Path C would pivot toward an energy-and-ancillary-services market with capacity acting as a backstop. Stakeholders will discuss these options through 2026 to build regional consensus, with a multi-track rollout possible (A in 2026–2029, B 2027–2030, C 2028+). Analysts expect reforms before the May 2027 capacity auction, amid pressures from rising load (notably data centers) and regulatory price caps.