April 1 is the 20th anniversary of PJM Interconnection’s operating the competitive wholesale electricity markets that maintain grid reliability at the lowest reasonable cost.
PJM launched the country’s first bid-based electricity market in 1997, amid a federal restructuring of the industry that opened transmission lines to competitors and non-incumbent entities. PJM quickly refined the system to align locational prices with corresponding grid conditions, a model now used around the world.
“The impact of the markets was to open up the power industry to a much broader group of potential participants – many with new and more efficient technologies,” said PJM President and CEO Andy Ott, who designed the initial market. “Electricity has become more affordable because we have more and more people competing.”
PJM will mark the anniversary through the year, including in May at the Annual Meeting of Members.