Monitoring Analytics, the independent market monitor for PJM, posted the 2016 State of the Market Report for PJM on the Monitoring Analytics webpage yesterday.
- PJM Interconnection’s wholesale energy, capacity and regulation markets produced competitive results during 2016.
- PJM real-time load-weighted energy market prices were lower in 2016 than at any time in PJM history since the beginning of the competitive wholesale market on April 1, 1999. This shows the PJM markets work and provide competition.
- Energy prices were lower as a direct result of lower fuel prices and the resultant increased role of gas as the marginal fuel.
- The load-weighted average real-time locational marginal price was 19.2 percent lower in 2016 than in 2015, $29.23 per megawatt hour versus $36.16 per megawatt hour.