Committees & Groups

Issue Details

Energy Price Formation

 The right price in the energy market should not only reflect the true incremental costs of resources required to serve demand, but also drive incentives for providing the flexibility needed to operate the system given the constantly changing nature of its conditions. Inaccurate energy market pricing that does not adequately value the reliability attributes provided by needed resources, regardless of fuel type, is likely to result in a less-efficient resource mix to maintain a reliable grid. PJM recommends investigating energy and reserve price formation enhancements, including how energy and reserve prices are calculated and how prices are formed during shortage conditions, which could more transparently reveal the true cost of meeting system reliability needs.

Proposed Timeline

Issue initiated: 12.21.2017
Work begins: 12.4.2017
Target Completion: 2.6.2019
Actual Completion: 2.6.2019

Issue Details

Stakeholder Body Energy Price Formation Senior Task Force
Facilitator Anders, David
Subject Matter Expert Keech, Adam J.
Problem Statement/
Issue Charge First Read
12.7.2017
Issue Catalyst PJM
Issue Status Closed
Manual Changes Yes
Agreement Changes Open Access Transmission Tariff, Operating Agreement
  • Stakeholder Process Step

  • Completed Approved
  • Completed Education
  • Completed Interest
  • Completed Design
  • Completed Options
  • Completed Packages
  • Completed Consensus
  • Completed Review
  • Completed Completed
 9.21.2022 - MRC
Agenda  PDF
Agenda-doc  DOC
Consent Agenda A - Draft MRC Minutes 08.24.2022  PDF
Consent Agenda B - 1 Manuals 10 12 13 Reserve Price Formation Revision - Presentation  PDF
Consent Agenda B - 2 Manuals 10 12 13 Reserve Price Formation Revision - Executive Summary  PDF
Consent Agenda B - 3 Manual 10 Reserve Price Formation Revisions - Redline  PDF
Consent Agenda B - 4 Manual 10 Reserve Price Formation Revisions - Clean  PDF
Consent Agenda B - 5 Manual 12 Reserve Price Formation Revisions - Redline  PDF
Consent Agenda B - 6 Manual 12 Reserve Price Formation Revisions - Clean  PDF
Consent Agenda B - 7 Manual 13 Reserve Price Formation Revisions - Redline  PDF
Consent Agenda B - 8 Manual 13 Reserve Price Formation Revisions - Clean  PDF
Consent Agenda D - 1 Manual 15 Reserve Price Formation and Biennial Revisions - Presentation  PDF
Consent Agenda D - 2 Manual 15 Reserve Price Formation Revisions - Executive Summary  PDF
Consent Agenda D - 3 Manual 15 Reserve Price Formation Revisions - Redline  PDF
Consent Agenda D - 4 Manual 15 Reserve Price Formation Revisions - Clean  PDF
Consent Agenda G - 1 Manual 27 28 29 Reserve Price Formation Revisions - Presentation  PDF
Consent Agenda G - 2 Manual 27 28 29 Reserve Price Formation Revisions - Executive Summary  PDF
Consent Agenda G - 3 Manual 28 Reserve Price Formation Revisions - Redline  PDF
Consent Agenda G - 4 Manual 28 Reserve Price Formation Revisions - Clean  PDF
Consent Agenda G - 5 Manual 29 Reserve Price Formation Revisions - Redline  PDF
Consent Agenda G - 6 Manual 29 Reserve Price Formation Revisions - Clean  PDF
Item 01A - 1 Manual 11 Reserve Price Formation Revisions - Presentation  PDF
Item 01A - 2 Manual 11 Reserve Price Formation Revisions - Executive Summary  PDF
Item 01A - 3 Manual 11 Reserve Price Formation Revisions - Redline  PDF
Item 01A - 4 Manual 11 Reserve Price Formation Revisions - Redline - Friendly Amendment  PDF
 8.24.2022 - MRC
Agenda  PDF
Agenda-doc  DOC
Item 05A - 1 Manuals 10 12 13 Reserve Price Formation Revision - Presentation  PDF
Item 05A - 2 Manuals 10 12 13 Reserve Price Formation Revisions - Executive Summary  PDF
Item 05A - 3 Manual 10 Reserve Price Formation Revisions - Redline  PDF
Item 05A - 4 Manual 10 Reserve Price Formation Revisions - Clean  PDF
Item 05A - 5 Manual 12 Reserve Price Formation Revisions - Redline  PDF
Item 05A - 6 Manual 12 Reserve Price Formation Revisions - Clean  PDF
Item 05A - 7 Manual 13 Reserve Price Formation Revisions - Redline  PDF
Item 05A - 8 Manual 10 Reserve Price Formation Revisions - Clean  PDF
Item 05B - 1 Manual 15 Reserve Price Formation and Biennial Revisions - Presentation  PDF
Item 05B - 2 Manual 15 Reserve Price Formation Revisions - Executive Summary  PDF
Item 05B - 3 Manual 15 Reserve Price Formation Revisions - Redline  PDF
Item 05B - 4 Manual 15 Reserve Price Formation Revisions - Clean  PDF
Item 05C - 01 Manual 11 27 28 29 Reserve Price Formation Revisions - Presentation  PDF
Item 05C - 02 Manual 27 28 29 Reserve Price Formation Revisions - Executive Summary  PDF
Item 05C - 03 Manual 11 Reserve Price Formation Revisions - Executive Summary  PDF
Item 05C - 04 Manual 11 Reserve Price Formation Revisions - Redline  PDF
Item 05C - 05 Manual 28 Reserve Price Formation Revisions - Redline  PDF
Item 05C - 06 Manual 28 Reserve Price Formation Revisions - Clean  PDF
Item 05C - 07 Manual 29 Reserve Price Formation Revisions - Clean  PDF
Item 05C - 08 Manual 29 Reserve Price Formation Revisions - Redline  PDF
3.29.2019 -Filing-
Docket No. EL19-58-000  PDF
7.6.2020 -Filing-
Docket No. EL19-58-002  PDF
8.5.2020 -Filing-
Docket No. EL19-58-003  PDF
5.21.2020 -Order-
Docket No. EL19-58-000  PDF
11.12.2020 -Order-
Docket No. EL19-58-002  PDF
11.12.2020 -Order-
Docket No. EL19-58-003  PDF