We use cookies to provide you with a better experience. By continuing to browse this site you are agreeing to our use of cookies in accordance with our Cookie Policy.
  • RTO Insider
    • CAISO
    • ERCOT
    • MISO
    • PJM
    • ISO-NE
    • NYISO
    • SPP
    • FERC & Federal
  • ERO Insider
    • NERC & Committees
    • FERC & Federal
    • Regional Entities
    • Standards/Programs
  • NetZero Insider
    • Federal Policy
    • State & Local Policy
    • Building Decarbonization
    • Transportation Decarbonization
    • Transmission & Distribution
    • Generation & Fuels
    • Equity & Economics
    • Technology
  • Calendar
    • RTO Insider Events
    • ERO Insider Events
    • NetZero Insider Events
  • February 06, 2023
  • Log In
  • Register
  • Log Out
  • My Account
  • Subscribe
  • February 06, 2023
February 06, 2023
  • Log In
  • Register
  • Log Out
  • My Account
Home » Rule Changes Could Spur $1.4B Jump in PJM Market Costs
Looking to read the full article? Subscribe today!
An example presented by PJM highlights how its current LMP calculation method fails to represent true incremental cost. When a flexible unit is on the margin, the LMP is its offer price, but when it is an inflexible unit, the LMP drops to the next flexible unit's offer. The inflexible unit receives uplift as an out-of-market payment to compensate for its costs. PJM's proposal would set LMP at the inflexible unit's offer and pay flexible units lower in the stack to follow the reduction in load. | PJM

Rule Changes Could Spur $1.4B Jump in PJM Market Costs

Nov 15, 2017
PJM / Energy Market
By Rory D. Sweeney PJM on Wednesday released a proposal for revising price formation rules in its energy markets, teeing up stakeholder deliberation on changes that staff estimate could increase market costs by as much as $1.4 billion. The two-part plan focuses on reducing out-of-market payments and changing shortage pricing...

This article is for registered users or paid subscribers ONLY. Want to be one? You can register here and check out our subscription plans here. We'd love to be your eyes and ears.

Already a subscriber? Login here.

  • Publications
    • RTO Insider
      • CAISO
      • ERCOT
      • ISO-NE
      • MISO
      • NYISO
      • PJM
      • SPP
      • FERC & Federal
    • ERO Insider
      • NERC & Committees
      • FERC & Federal
      • Regional Entities
      • Standards & Programs
    • NetZero Insider
      • Federal Policy
      • State & Local Policy
      • Building Decarbonization
      • Transportation Decarbonization
      • Transmission & Distribution
      • Generation & Fuels
      • Equity & Economics
      • Technology
  • Additional Links
    • About Us
    • Why Subscribe?
    • FAQ
    • Terms
    • Privacy Policy
    • Cookie Policy
  • Contact Us
    • Rich Heidorn Jr.
      Editor-in-Chief & Co-Publisher

      Merry Eisner
      Chief Operating Officer & Co-Publisher

      10837 Deborah Drive
      Potomac, MD 20854
      (301) 658-6885

    • Facebook Twitter Linkedin
Copyright ©2023. All Rights Reserved Privacy Policy | Terms Of Use. Design, CMS, Hosting & Web Development :: ePublishing