PJM Proposes Raising Minimum Capitalization to $2 Million

U.S. grid operator PJM Interconnection plans to increase its minimum capitalization threshold for the first time since 2011 to manage risk and inflation. The proposal includes a phased implementation starting in 2027 with a three percent annual increase to follow.

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PJM Interconnection will raise its minimum capitalization threshold to $2 million for wholesale electricity market participants in the United States. The proposal marks the first update to these financial requirements since 2011. Higher capital buffers aim to shield the grid operator from participant defaults as energy market volatility persists.

Strengthening Grid Stability Against Default Risk

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