FERC approves PJM reserve overhaul with $2B price tag, critics say move ignores overcapacity

Utility Dive: Operating reserves are the cushion of excess power grid operators keep on the system in case a generator has a sudden outage or there's a spike in demand. PJM then pays resources within its demand curve based on how much capacity it is projected to need.

The grid operator was having trouble paying those resources enough to successfully obtain and deploy reserves under current market rules, it said in its initial proposal to FERC.

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