Willis launches capacity revenue protection solution for PJM energy producers

Willis, a WTW business, announced the launch of Capacity Revenue Protection, a solution designed to help PJM energy producers safeguard revenue when physical damage leads to UCAP (Accredited Unforced Capacity) reductions and prolonged capacity payment impacts.

The offering addresses a coverage gap created when UCAP reductions continue to impact capacity payments long after repairs are completed. According to Willis, the financial effects of UCAP reductions can persist for 12 to 18 months, while traditional property and business interruption policies typically do not cover this exposure.

Capacity Revenue Protection is designed to provide predictable support through a parametric structure aligned with PJM’s market rules and capacity requirements, helping producers stabilize cash flow during extended recovery and recertification periods.

“PJM’s capacity framework is undergoing meaningful change, and producers need tools that match the realities of today’s market. Capacity Revenue Protection gives our clients a way to protect revenue long after the physical repairs are complete. It’s a forward looking solution built to support financial stability in a period of heightened uncertainty.” – Brian Fitzgerald, Director, Senior Property & Nuclear Insurance Broker.