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.