Stu Bresler of PJM appeared before the Pennsylvania House of Representatives Consumer Affairs Committee Monday, May 6, to discuss the benefits of market-based solutions to meeting electricity reliability needs and public policy goals.
The testimony comes as both houses of the Pennsylvania Legislature consider whether specific resources should receive additional, out-of-market revenue in order to meet environmental policy goals or preserve jobs. Bresler, senior vice president – Operations and Markets, emphasized that PJM respects the prerogative of Pennsylvania to set policy goals, as well as determine the assets it uses to meet the state’s electric reliability needs.
He said that PJM is neither an advocate nor opponent to Pennsylvania’s proposed legislation, but noted it would have an impact on PJM’s markets as they are currently structured.
“The benefits resulting from the PJM markets and enjoyed by Pennsylvania consumers stem from the wisdom and foresights of Pennsylvania’s prior policy decisions to leverage the power of competitive markets in meeting its resource adequacy needs,” said Bresler. “However, those markets need to work efficiently if they are to continue to achieve their goal of reliability at lowest cost.”
Bresler also highlighted the advantages of using a market-based system to achieve carbon reductions, such as through a carbon price, while noting that PJM does not have the authority to implement such a price.
“PJM is not an environmental or air quality policymaking entity,” he said. “Where PJM can play a role is in developing market-based mechanisms to help mitigate interstate impacts between states within PJM that do and do not choose to implement carbon pricing.”