PJM Reacts to DOE Grid Study

The U.S. Department of Energy issued its report, Staff Report to the Secretary on Electricity Markets and Reliability, late on Aug. 23. The report responded to Energy Secretary Rick Perry’s order for a study of the long-term reliability of the electric grid.

PJM issued the following statement on Aug. 24:

PJM Interconnection appreciates the thoughtfulness that went into the Staff Report to the Secretary on Electricity Markets and Reliability report. It is comprehensive and highlights key issues.

The report acknowledges that wholesale power markets are working and providing reliability at the lowest possible cost and that power supply resources are more diverse than they have ever been. It also highlights the importance of expediently addressing needed reforms in energy price formation followed by a focus on grid resilience. These issues are a top priority.

PJM has posted discussion papers on price formation and capacity market reform to accommodate state policies. Earlier this year, we published a paper, PJM’s Evolving Resource Mix and System Reliability, which demonstrated that the PJM region has remained reliable throughout the rapid changes in the resource mix. PJM’s analysis also indicated a need to focus on fuel assurance and resilience to take into account the changing operational risks that the industry faces.

PJM agrees with statements in the DOE report that any solutions must be cost effective and consider the costs to consumers.