June 24th PJM Committee Session: What We're Looking For

Research evidence excerpt

June 24th PJM Committee Session: What We're Looking For

Energy | Power & Utilities

June 17, 2026

Nicholas Amicucci, CFA June 24th PJM Committee Session: What

212-812-2931

nicholas.amicucci@evercoreisi.com We're Looking For

Sharon Wang Next Wednesday (June 24th), PJM will hold an in-person Members

212-653-8999 Committee session which we believe will provide a read on how the

Sharon.Wang@evercoreisi.com region’s Reliability Backed Procurement (RBP) will take form. While we

do not anticipate a “clean resolution” with 20+ competing package

proposals from various stakeholders, the PJM board has signaled it will

“proceed with its proposed framework for the Backstop” (per PJM Board

of Managers letter on May 19, 2026). We believe this signals the

Board’s intention to proceed with the RBP even if the stakeholder vote

fails to meet the two-thirds majority threshold. That said, which

package(s), if any, gain stakeholder support could impact how the PJM

chooses to file its proposal with the FERC which we view as the most

consequential event from the session for the IPPs. Specifically, we

believe the focal items for the Independent Power Producers from the

session include:

• The RPM ring-fencing mechanism, which would remove

RBP supply and the associated large load from the Base

Residual Auction. Absent this delineation the RTO’s base

design would force RBP-cleared resources to offer into the

RPM as “price-takers” which we believe would likely pressure

capacity clearing prices.

• Procurement target sizing and inclusion. We expect the

session to provide some clarity on the size of the initial RBP

target and whether behind-the-meter supply lowers this target.

We believe the determination of this treatment has the

potential to have a significant impact on the IPPs as it could