PJM Responds to State of the Market Report

PJM today released its response to the 2014 State of the Market Report, which was produced by Monitoring Analytics, the independent market monitor for PJM. In its report, the Market Monitor concluded that the PJM markets work. PJM notes that the observed market results support these conclusions.

The 2014 State of the Market Report provides an assessment of market performance and recommendations aimed at enhancing PJM’s market design or market performance.

PJM either has implemented or is in the process of addressing 66 percent of the Market Monitor’s recommendations. 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.

PJM’s Resolution of Market Monitor Recommendations

Status Description Number of Recommendations Percent*
Implemented These recommendations have been implemented. 20 22%
Stakeholder Process These recommendations are under active discussion in the PJM stakeholder process or other stakeholder forum. 25 27%
Pending before the FERC These recommendations are being considered by the FERC. 14 15%
Action Planned PJM expects to take action or initiate a stakeholder discussion on this recommendation in 2015. 12 13%
No further action planned PJM has reviewed this recommendation but does not plan to act on this issue in the near future due to:

  • No stakeholder consensus (13%)
  • Rejected by the FERC (13%)
  • PJM concerns (63%)
  • Recommendation is outside of PJM control (13%)*
15 16%
Low Priority These issues have low impact to the markets and PJM stakeholders and no action is planned in the near future. 7 8%

 *Total may add up to more than 100 percent because recommendations fall into more than one category.