PJM Capacity Prices and Mitigation Strategies

Course Description

Brian Perrone and Jarred Clements of Enel X Advisory provide an in-depth discussion of the PJM Capacity market and Reliability Pricing Model (RPM) – a construct designed to procure generating resources to ensure long-term grid reliability. Their presentation, which was delivered at a Campus Consortium for Decarbonization meeting, covers the major reforms that have affected RPM prices, PJM Capacity Auctions, and mitigation strategies.

Recorded June 17, 2025.

About the Instructor:

Brian Perrone, Principal Analyst II at Enel  X: Brian has been with Enel X Advisory since 2004. He is a 1994 graduate of Virginia Polytechnic Institute and State University, the same year in which he began his energy career with Apex Oil Company and received his MBA in finance from Loyola College in 1999. Since 1996 Mr. Perrone has held various positions with large natural gas firms including PG&E Energy and Columbia energy where he assisted in marketing, pricing and risk management for retail and wholesale Natural Gas units.  For the past 20 years, Brian has worked with large institutional power customers in the PJM market with a focus on energy market analysis, risk management and renewables management support.

Jarred Clements, Senior Procurement Manager, Enel X: Jarred has been with Enel X Advisory since 2018 after spending the previous 10 years with the national supplier Constellation NewEnergy. He has robust experience in U.S. natural gas and electricity markets and has held several roles in analytics and account management. Over the past seven years he has managed a number of large energy procurements and client relationships as well as serving as auction manager for the MassDEP 310 CMR 7.74 allowance auctions..

Course Outline

• Overview of PJM Capacity Auctions

• Recent Capacity Auction Results

• Mitigation Strategies
  • Supply Side Approaches
    • Third Party Supply
    • PPAs

• Demand Management Approaches
  • Peak Management
  • Demand Response Programs