Monitor Finds PJM Markets Competitive In First Half Of 2015
August 18, 2015
PJM’s markets produced competitive results during the first six months of 2015, according to the grid operator’s independent market monitor. Because of lower fuel prices and demand, energy market prices were down 39.5 percent in the first half of 2015 compared to 2014, dropping to $42.30/MWh from $69.92/MWh. Energy prices were set, on average, by units generally operating at or close to their short-run marginal costs. This is considered to be evidence of competitive behavior and resulted in the competitive market outcome. Additionally, total energy uplift charges decreased by $590.1 million or 71 percent in the first six months of 2015 compared to the first six months of 2014, from $831.5 million to $241.4 million. Congestion costs decreased by $523.6 million, or 36.3 percent, to $918.6 million in the first six months of this year.