Markets & Operations

Markets & Operations

Since it began operating a competitive wholesale electricity market in 1997, PJM Interconnection has employed a dynamic collaborative process with its members that has expanded the number of markets in the region. Acting neutrally and independently, PJM establishes systems and rules to ensure that the markets operate fairly and efficiently.

More than 900 members participate in PJM’s markets. PJM uses sophisticated information technology to provide market participants with a variety of online resources and Tools to help them make business decisions and carry out their transactions. Billings in PJM-administered markets total more than $110 billion since the regional markets opened.

Highlights

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.
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:  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:  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.
Financial Credit:  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.

Upcoming Training

FOTO King of Prussia, PA 09.16.2014 09.24.2014    Full
MKT-Op Audubon, PA 09.17.2014 09.18.2014    Full
RPM Audubon, PA 10.01.2014 10.02.2014    Open
Website Virtual 10.17.2014 10.17.2014    Open
Plan-201 Audubon, PA 10.22.2014 10.22.2014    Open
PJM 101 Columbus, OH 10.23.2014 10.23.2014    Full
NERC-Stand Richmond, VA 10.27.2014 10.29.2014    Open
MS 301 Richmond, VA 10.27.2014 10.29.2014    Open
GOF Audubon, PA 11.04.2014 11.07.2014    Open
O:DSRinPJM Virtual 11.12.2014 11.12.2014    Open
SR-Wkshp Audubon, PA 12.10.2014 12.11.2014    Open
MKT-Op Audubon, PA 12.10.2014 12.11.2014    Open

Market Monitoring

Monitoring Analytics was established in 2008 and serves as the Independent Market Monitor for PJM under a long-term contract. Monitoring Analytics also has extensive experience producing market-related reports, including the PJM State of the Market Report.