Key facts
- PJM Interconnection proposed raising its minimum capitalization threshold to $2 million for market participants.
- The proposed changes are the first since 2011 and aim to account for inflation, manage risk, and protect against defaults.
- The proposal includes a 3% annual increase to the threshold to account for inflation, beginning five years after implementation.
- Alternative means for market access, such as collateral or letters of credit, are provided.
- Implementation is scheduled to take effect on April 30, 2027.
PJM Interconnection operates the largest electricity market in the United States, serving all or parts of 13 states and the District of Columbia. Changes to market participant capitalization requirements can impact the ability of smaller entities to participate in wholesale electricity markets and affect overall market stability and risk management.