According to a report released yesterday by Monitoring Analytics, LLC, the results of the energy, capacity and regulation markets in PJM were competitive, resulting in a good overall state of the market in PJM for 2013. Monitoring Analytics, LLC is the Independent Market Monitor for PJM and is also referred to as the Market Monitoring Unit (“MMU”). According to the report, the goal of a competitive power market is to provide power at the lowest possible price, consistent with cost and the MMU states that PJM markets generally met that goal in 2013 but there is room for improvement. As part of the market operator function, PJM coordinates and directs the operation of the transmission grid and plans transmission expansion improvements to maintain grid reliability. In 2013, PJM had total billings of $33.86 billion, up from $29.18 billion in 2012.
For those new to the industry or not familiar with PJM or Regional Transmission Organizations (“RTOs”) in general, the report is required reading. In addition to providing a great overview about PJM’s structure, such as Figure 1-1 below, it provides a great explanation of the many markets in PJM as well as key terms often used in the energy industry. For example, you will learn not only that PJM operates the following markets but what they mean:
- Day-Ahead Energy Market,
- Real-Time Energy Market,
- Reliability Pricing Model (“RPM”) Capacity Market,
- Regulation Market,
- Synchronized Reserve Market,
- Day Ahead Scheduling Reserve (“DASR”) Market and
- Long Term, Annual and Monthly Balance of Planning Period Auction Markets in Financial Transmission Rights (FTRs).
Energy geeks and those wanting details, this report does not disappoint. It is packed with enough data to dominate your reading list for a month. The extensive two volume report and media summary can be found on the Monitoring Analytics website. You can also read a related article on EnergyCentral.com which extracts additional details from the in-depth report.
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