Welcome to Exploring PJM! With this story, Inside Lines begins a series that cover a variety of topics, including the basics of PJM; the nuts-and-bolts of how PJM operates; PJM regions; membership, and the fuel diversity in PJM’s footprint.
As Inside Lines rolls out its new series, Exploring PJM, perhaps the best place to start is here.
Who is PJM?
PJM Interconnection is, first and foremost, a regional transmission organization which coordinates the movement of wholesale electricity in all or parts of Delaware, Illinois, Indiana, Kentucky, Maryland, Michigan, New Jersey, North
Carolina, Ohio, Pennsylvania, Tennessee, Virginia, West Virginia and the District of Columbia.
PJM operates a competitive wholesale electricity market and manages the high-voltage electric grid to ensure reliability for more than 61 million people. It doesn’t own assets It doesn’t serve end-use retail customers – it’s not “the electric company.” It coordinates moving the electricity to get it to the electric company to then get to consumers..
PJM’s three priorities are:
- keeping the lights on
- administering the buying and selling of electricity through wholesale electricity markets
- assessing and planning for the future needs of the electric grid.
PJM is a membership organization where members share the benefits of access to electricity resources across a broad geographical region and competitive wholesale markets. PJM members have a vote in the PJM stakeholder process, working on issues related to PJM operations, markets, planning and other matters.
Compliance with regional and national industry standards also drives PJM’s business. PJM is regulated by the Federal Energy Regulatory Commission. The FERC is an independent federal agency that regulates the interstate transmission of electricity, natural gas and oil, hydropower and natural gas projects.
Effective governance and a collaborative stakeholder process help PJM achieve its vision: “To be the electric industry leader – today and tomorrow – in reliable operations, efficient wholesale markets, and infrastructure development.”