Committees & Groups

Issue Details

Capital Recovery Factor (CRF) for Avoidable Project Investment Cost Determinations (APIR)

As specified in section 6.8(a), Attachment DD of the PJM Tariff, a Capital Recovery Factor (“CRF”) is used to calculate the Avoidable Project Investment Rate (“APIR”) as a component of the Net Avoidable Cost Rate (“ACR”) of a resource that is seeking a resource-specific Market Seller Offer Cap or a resource specific MOPR Floor Offer Price. This section of the PJM Tariff includes a table with a unique CRF value specified for each of eight different assumed capital recovery periods. In 12/3/2020, the PJM IMM posted a statement expressing concern that the values of the CRF table are incorrect because they do not reflect current federal tax laws. PJM understands the IMM concern and proposes to address the issue as part of the Quick Fix process which is outlines in Manual 34, Section 8.6.1.

Proposed Timeline

Issue initiated: 3.10.2021
Work begins: 1.12.2021
Target Completion: 3.10.2021
Actual Completion: 3.10.2021

Issue Details

Stakeholder Body Market Implementation Committee
Facilitator Morelli, Lisa K.
Subject Matter Expert Bastian, Jeff
MIC Approval Date 3.10.2021
MRC Approval Date 4.21.2021
MC Approval Date 4.21.2021
Problem Statement/
Issue Charge First Read
1.12.2021
Issue Catalyst PJM
Issue Status Closed
Manual Changes No
Agreement Changes Open Access Transmission Tariff
  • Stakeholder Process Step

  • Completed Approved
  • Completed Education
  • Completed Interest
  • Completed Design
  • Completed Options
  • Completed Packages
  • Completed Consensus
  • Completed Review
  • Completed Completed
5.4.2021 -Filing-
Docket No. ER21-1844-000  PDF