ChalkPoint witness referenced PJM auction clearing that showed a UCAP shortage, acknowledging PJM's separate filing with FERC but saying that the shortfall is a useful signal rather than a sole justification for approving contract prices.

PJM Interconnection has released a detailed proposal designed to address the need for a Reliability Backstop Procurement. The document outlines a temporary mechanism intended to safeguard resource adequacy, support the Connect and Manage interim strategy, and lay the groundwork for forthcoming investment incentive reforms. PJM stated it received significant input from stakeholders on this matter

PJM, responding to a request from 13 state governors, is implementing a new initiative called the “Reliability Backstop Auction” intended to provide financial incentives for new power generation facilities. The move comes after years of warnings about potential resource adequacy shortfalls, a situation that has progressively worsened as electricity demand rises while power supply remains