PJM Capacity Performance - Its Impact on You

September, 15, 2015
Dear Premier Power Solutions, LLC Customer,

We value our customer relationship and want to be proactive in notifying you of the impact of regulatory changes that will soon affect customers across the PJM region.   These changes will likely be passed on to you through your electricity bills, beginning in June 2016, since capacity is a component of your electricity supply service. 

About PJM

PJM is the regional transmission operator for portions of 13 states and the District of Columbia, and it is responsible for ensuring there will be enough electricity supply to meet customer demand.  Recent critical reforms ordered by the Federal Energy Regulatory Commission to increase capacity and strengthen reliability of the region's power supply require generators investing in their power plants to ensure reliability during extreme weather events and for fossil fuel generators to have sufficient fuel on hand.  These stronger requirements will benefit customers with fewer expected power plant outages during extreme weather and fewer dramatic price spikes.

The price impact that PJM Capacity Performance will have on your total electricity bill will vary depending on the final Capacity Performance auction prices and specifics of your electricity account. The final auction was held September 9, 2015, but suppliers have not defined exactly how each of them will pass the increased capacity charges on to you.  

If you are under contract with a supplier now and the contract extends beyond June 1, 2016, you will likely see the additional costs associated with this change passed through beginning on June 1, 2016.  If you are renewing your contract or signing a new one that extends beyond June 1, 2016, you can expect to have these cost increases built into your energy price.   We have reached out to each supplier we do business with and have asked them to forward to us the amount of the incremental cost that will be passed on, as well as their method of billing that amount to you.

Prior to PJM Capacity Performance charges taking effect in June 2016, we will try to update you with more information regarding the financial impact and timeline for action of any upcoming pass through charges, as we hear more from each supplier.  We welcome any questions you may have regarding this notification, or any you may receive from your supplier, regarding this change. 

Please contact your Premier Power representative to discuss any questions you may have concerning this recent regulatory matter.

Deana M. Maxwell
Deana M. Maxwell
Vice President Sales Support & Customer Service
Premier Power Solutions, LLC