PJM has identified three potential paths to redesign the capacity market

	Path A Stabilized markets Mandate long-term hedging	Path B Differential reliability Ration reliability across customer classes	Path C Energy market transition Shift revenue toward energy and ancillary services
Description	Most load is covered years ahead, via LSE hedging mandates or PJM-administered procurement.	New large loads without matching supply get curtailed first.	Capacity market narrows to a backstop; energy and AS scarcity prices do the work.
Risks (per PJM)	Needs a "super-cap" non-compliance penalty. Rapid rollout could amplify the affordability shock it aims to fix.	"Most complex of the three paths." Needs coordinated FERC and state action.	E&AS reforms are "non-trivial and contested." Sequencing risk: weak capacity signals before energy reform = reliability gap.
BESS impact	Ambiguous. Capacity products have anchored on thermal reference units.	Procurement driver for hyperscaler-backed storage, but no change to the wholesale revenue stack.	Most favorable. More scarcity upside, biggest AS reforms.