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.
Reliability Pricing Model:
PJM’s Reliability Pricing Model (RPM) provides a long-term price signal, consistent with the PJM Regional Transmission Expansion Planning process, for capacity resources and load serving entities’ (LSEs) unforced capacity obligations.
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.
Demand response, a planned reduction in electricity use during times of high demand, helps maintain grid reliability by reducing the stress on the system. PJM encourages demand response activity in the PJM grid to help reduce wholesale electricity prices and reduce electricity usage to address environmental concerns.
Market Settlements provides participants with reconciliation billing determinants, as well as guides that offer brief descriptions of the charges and credits that appear on monthly invoices.
Information and guidelines about establishing credit to participate in PJM’s markets is now available through PJM Settlement, Inc.
, the subsidiary company handling all of PJM’s settlement activities.