PJM today released its response to the 2016 State of the Market Report, produced by Monitoring Analytics, the independent market monitor (IMM) for PJM. The 2016 State of the Market Report provides an assessment of market performance and recommendations aimed at enhancing PJM’s market design and market performance.
PJM is confident that the market results of 2016 reflect a fundamentally sound market design built on solid economic principles and competitively disciplined market behavior. PJM looks forward to working with the IMM to address the issues and recommendations contained in the 2016 State of the Market Report. Going forward, PJM anticipates potential opportunities to enhance market price formation in the energy, reserve and capacity markets.
Some IMM recommendations are repeated from past State of the Market Reports. PJM either has implemented or is in the process of addressing 46 percent of the Market Monitor’s recommendations. Another 4 percent of the recommendations are being considered by the Federal Energy Regulatory Commission. In addition, stakeholders also discussed several of the recommendations; those recommendations either were not adopted by stakeholder committees or were not accepted by the FERC.