Financial Transmission Rights

PJM Interconnection auctions Financial Transmission Rights (FTRs) to assist market participants in hedging price risk when delivering energy on the grid. FTRs are financial instruments that entitle the holder to a stream of revenues (or charges) based on the hourly energy-price differences across the transmission path in the Day-Ahead Market. PJM Interconnection auctions Financial Transmission Rights (FTRs) to assist market participants in hedging their price risk when delivering energy on the grid. FTRs are financial instruments that entitle the holder to a stream of revenues (or charges) based on the hourly congestion price differences across a transmission path in the Day-Ahead Energy Market. FTRs provide a hedging mechanism that can be traded separately from transmission service. Market participants are able to hedge against their congestion costs by acquiring FTRs that are consistent with their energy deliveries. Market participants can manage their FTR portfolios by using the eFTR tool. Participants use eFTR to post their FTRs for bilateral trading as well as to participate in the scheduled monthly, annual and long term FTR auctions. eFTR Login Page Model information used in the FTR and associated Auction Revenue Rights (ARR) market is found on the FTR Model Information page. FTR Model Information Information is available on current and historical Auction Revenue Rights (ARR) allocations and Financial Transmission Right (FTR) auctions. Auction User Information Historical FTR Monthly auction results are posted for download. Historical FTR Monthly Auction Results Page The PJM State of the Market Report is published quarterly and annually by PJM's Independent Market Monitor, Monitoring Analytics. The report contains a wealth of data regarding all facets of PJM's markets. The reports are available from the Monitoring Analytics website and from PJM. PJM State of the Market Reports Auction Revenue Rights (ARR) analyses are performed as a function of grid planning. Revenues from annual Financial Transmission Right (FTR) auctions are allocated annually to Firm Transmission Service customers through long-term Auction Revenue Rights (ARR) entitlements. PJM’s Regional Transmission Expansion Plan (RTEP) process incorporates steps to determine the transmission system enhancements required to maintain the 10-year feasibility of Stage 1A ARRs. These analyses are made available on the ARR Analyses page. ARR Analyses Page

Reliability Pricing Model (a.k.a. The Capacity Market)

The Reliability Pricing Model (RPM) is PJM’s capacity-market model. Implemented in 2007, the RPM, based on making capacity commitments three years ahead, is designed to create long-term price signals to attract needed investments in reliability in the PJM region. The long-term RPM approach, in contrast to PJM’s previous short-term capacity market, includes incentives that are designed to stimulate investment both in maintaining existing generation and in encouraging the development of new sources of capacity – resources that include not just generating plants, but demand response and transmission facilities. The RPM model works in conjunction with PJM’s Regional Transmission Expansion Planning (RTEP) process to ensure the reliability of the PJM region for future years. The RPM includes the continued use of self-supply and bilateral contracts by load-serving entities (LSEs) to meet their capacity obligations. The capacity auctions under the RPM obtain the remaining capacity that is needed after market participants have committed the resources they will supply themselves or provide through contracts. The RPM provides: Procurement of capacity three years before it is needed through a competitive auction; Locational pricing for capacity that reflects limitations on the transmission system’s ability to deliver electricity into an area and to account for the differing need for capacity in various areas of PJM; A variable resource requirement to help set the price for capacity; A backstop mechanism to ensure that sufficient resources will be available to preserve system reliability. The Reliability Pricing Model (RPM) is comprised of one base residual auction and up to three incremental auctions per delivery year (June 1 – May 31). The information on this page presents general information as it pertains to each delivery year, including modeling information, planning parameters, and summary auction results. RPM Auction User Information Prior to the implementation of the Reliability Pricing Model in 2007, which replaced it, PJM's Capacity Credit Market enabled suppliers to offer and buyers to purchase unforced capacity credits in PJM. Archived information is available on the Market Results page. Planning parameters are available on the Planning Parameters Page. Market Results Page Planning Parameters Page The PJM State of the Market Report is published quarterly and annually by PJM's Independent Market Monitor, Monitoring Analytics. The report contains a wealth of data regarding all facets of PJM's markets. The reports are available from the Monitoring Analytics website and from PJM. PJM State of the Market Reports

Ancillary Services

Ancillary services support the reliable operation of the transmission system as it moves electricity from generating sources to retail customers. PJM Interconnection currently operates two markets for ancillary services - synchronized reserves and regulation. eMKT allows PJM members to submit information and obtain data needed to conduct business in the Day-Ahead, Regulation and Synchronized Reserve markets. The public may request access to eMKT and view data related to the markets such as market results, constraints, and so on. Data is retained in eMKT for 90 days, after which it is removed from the public system and it is no longer available. eMKT page including documentation and supplemental materials and registration for new users Login to eMKT Synchronized Reserve supplies electricity if the grid has an unexpected need for more power on short notice. The Synchronized Reserve page contains links to some historical synchronized reserve data. (This is also sometimes refered to as "spinning reserve" data) Synchronized Reserve Page The Spinning Reserve Data page has statistical inforamtion on the PJM Synchronized Reserve Market (also called the "spinning reserve"). Some market-sensitive information is masked. Spinning Reserve Data Page Regulation service corrects for short-term changes in electricity use that might affect the stability of the power system. It helps match generation and load and adjusts generation output to maintain the desired frequency. Load-serving entities can meet their obligation to provide regulation to the grid by using their own generation, by purchasing the required regulation under contract with another party or by buying it on the Regulation Market. The Market-Based Regulation page contains information such as Regulation Settlement reports, and some historical and informational data on the Regulation Market Market-Based Regulation Page In addition, Black Start Service supplies electricity for system restoration in the unlikely event that the entire grid would lose power. There is no data posted for Black Start Services, but some manual material is available below. Black Start Service Page The PJM State of the Market Report is published quarterly and annually by PJM's Independent Market Monitor, Monitoring Analytics. The report contains a wealth of data regarding all facets of PJM's markets. The reports are available from the Monitoring Analytics website and from PJM. PJM State of the Market Reports

Energy Market

PJM Interconnection coordinates the continuous buying, selling and delivery of wholesale electricity through the Energy Market. In its role as market operator, PJM balances the needs of suppliers, wholesale customers and other market participants and monitors market activities to ensure open, fair and equitable access. PJM’s Energy Market operates much like a stock exchange, with market participants establishing a price for electricity by matching supply and demand. The market uses locational marginal pricing (LMP) that reflects the value of the energy at the specific location and time it is delivered. If the lowest-priced electricity can reach all locations, prices are the same across the entire grid. When there is transmission congestion, energy cannot flow freely to certain locations. In that case, more-expensive electricity is ordered to meet that demand. As a result, the locational marginal price is higher in those locations. The Energy Market consists of Day-Ahead and Real-Time markets. The Day-Ahead Market is a forward market in which hourly LMPs are calculated for the next operating day based on generation offers, demand bids and scheduled bilateral transactions. The Real-Time Market is a spot market in which current LMPs are calculated at five-minute intervals based on actual grid operating conditions. Real-time prices are available. PJM settles transactions hourly and issues invoices to market participants monthly. The PJM State of the Market Report is published quarterly and annually by PJM's Independent Market Monitor, Monitoring Analytics. The report contains a wealth of data regarding all facets of PJM's markets. The reports are available from the Monitoring Analytics website and from PJM. PJM State of the Market Reports Day Ahead PJM posts some information directly to the web site, while other data is available from the eMKT tool. The Day-Ahead Energy Market page contains both historical and current data about specific aspects of this market, such as daily and monthly energy prices, hourly demand bid data, and constraint data. Day-Ahead Energy Market Page eMKT allows PJM members to submit information and obtain data needed to conduct business in the Day-Ahead, Regulation and Synchronized Reserve markets. The public may request access to eMKT and view data related to the markets such as market results, constraints, and so on. Data is retained in eMKT for 90 days, after which it is removed from the public system and it is no longer available. eMKT page including documentation and supplemental materials Login to eMKT PJM posts data regarding the system model that is used in the energy markets on the LMP Model Information page. This includes information such as hub definitions, the bus model, the LMP bus model and related information. LMP Model Information Page PJM posts daily generation offers to the energy markets as well as demand bids and increment and decrement bid data. This information is posted on a delay (currently four months) and identifying information is encoded to prevent identification. PJM Daily Energy Market Bid Data (June 2000 to May 2006) PJM Daily Energy Market Bid Data (June 2006 to present) Hourly Day-Ahead Demand Bid Data Hourly Day-Ahead Increment Offer & Decrement Bid Data Real Time PJM posts some information directly to the web site, while other data is available from the eMKT tool. The Real-Time Energy Market page contains historical and current data about specific aspects of this market such as load forecasts, monthly energy prices, and definitional information. Real-Time Energy Market Page eMKT allows PJM members to submit information and obtain data needed to conduct business in the Day-Ahead, Regulation and Synchronized Reserve markets, and to view the results of the market clearings. These results are retained for 90 days. Anyone may request an account on eMKT and view the market results. eMKT page including documentation and supplemental materials Login to eMKT PJM posts data regarding the system model that is used in the energy markets on the LMP Model Information page. This includes information such as hub definitions, the bus model, the LMP bus model and related information. LMP Model Information Page The Operational Data page has an up-to-the-moment snapshot of dispatch rates, prices and load. eData is a publicly available tool that displays information about the grid, including load, prices, binding constraints, emergency procedures, dispatch lamba and more. eData offers a guest login, or anyone may request a user account. The same data is available to both types of users, but having an account will allow eData to save the settings for your displays and data of interest. eData information Page Login to eData as a guest PJM posts daily generation offers to the energy markets. This information is posted on a delay (currently four months) and identifying information is encoded to prevent identification. PJM Daily Energy Market Bid Data (June 2000 to May 2006) PJM Daily Energy Market Bid Data (June 2006 to present)

Data Related to Long Term Planning

PJM’s Regional Transmission Expansion Plan (RTEP) identifies transmission system additions and improvements needed to keep electricity flowing to 60.1 million people throughout 13 states and the District of Columbia. Studies are conducted that test the transmission system against mandatory national standards and PJM regional standards. These studies look 15 years into the future to identify transmission overloads, voltage limitations and other reliability standards violations. PJM then develops transmission plans in collaboration with Transmission Owners to resolve violations that could otherwise lead to overloads and black-outs. This process culminates in one recommended plan – one RTEP – for the entire PJM footprint that is subsequently submitted to PJM’s independent governing Board for consideration and approval. The Planning page at pjm.com contains data related to: Generation interconnections (including queues) Merchant transmission projects (including queues) Long-Term Firm Transmission Service Request customers Generator Retirements Auction Revenue Rights Analyses RTEP Upgrades and Status RTEP development Resource Adequacy Planning Design, Engineering & Construction Interregional Planning All of this information may be accessed at the Planning Page

Data Related to Environmental Issues

PJM has a renewable energy dashboard. It contains charts showing information on the state of renewables in PJM today, as well as what is planned for the future. Renewable Energy Dashboard PJM-EIS (a PJM subsidiary) maintains the Generator Attribute Tracking System (GATS). This system tracks information about how megawatt-hours of electricity were generated. The data are used to meet the information disclosure requirements of states with fuel mix and emissions disclosure requirements or that have renewable portfolio standard requirements. Participation in GATS is by paid subscription. GATS has several public reports available about generators, Residual mix, statistics on certificates generated, and more. These are displayed in the Public Reports section of the login page. GATS login page (with Public Reports) PJM’s Regional Transmission Expansion Plan (RTEP) identifies transmission system additions and improvements needed to keep electricity flowing to 60.1 million people throughout 13 states and the District of Columbia. Studies are conducted to test the transmission system against mandatory NERC national standards as well as PJM regional standards. These studies look 15 years into the future to identify transmission overloads, voltage limitations and other reliability standards violations. PJM then develops transmission plans to resolve violations that could otherwise lead to overloads and black-outs. These plans are examined for their feasibility, impact and costs and are discussed throughout the development process with PJM stakeholders. The report contains data and analysis at the state level on a variety of factors that impact planning, including renewable resources. Regional Transmission Expansion Plan Report The PJM State of the Market Report is published quarterly and annually by PJM's Independent Market Monitor, Monitoring Analytics. The report contains a wealth of data regarding all facets of PJM's markets including some information related to renewable energy sources. The reports are available from the Monitoring Analytics website and from PJM. PJM State of the Market Reports PJM producted a report which can be used to estimate carbon dioxide reductions from demand response, energy efficiency measures and increases in emission-free generation. The report shows the average amount of CO2 emitted for marginal units—generating units that are the last to be brought on-line and set the price for energy for that five-minute increment—during both peak and off-peak periods. Any reductions in power use or increase in emission-free generation would reduce production and CO2 emissions by marginal generation units. Marginal Carbon Report (PDF)