pjm electric market - federal energy regulatory … swmaac emaac dpl-south ps-north (no nj) pseg...

Federal Energy Regulatory Commission • Market Oversight • www.ferc.gov/oversight

PJM Electric Market: Overview and Focal Points

1045

PJM Electric Market

Source: Velocity Suite Intelligent Map Updated August 23, 2010

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Overview

Market Description:PJM Interconnection is a regional transmission organization (RTO) that coordinates the movement of wholesale electricity in all or parts of 13 states and the District of Columbia, an area that includes more than 51 million people. As of December 31, 2009, it had installed generating capacity of 167,326 megawatts (MW) and over 500 market buyers, sellers and traders of electricity. In 2009 demand peaked at 126.8 GW on August 10, the lowest annual peak since the last transmission integration.

Geography

States covered: All or most of Delaware, District of Columbia, Maryland, New Jersey, Ohio, Pennsylvania, Virginia and West Virginia. Parts of Indiana, Illinois, Kentucky, Michigan, North Carolina and Tennessee.

Reliability region: ReliabilityFirst Corporation (RFC) and SERC Reliability Corporation (SERC)

Balancing authority: PJM. The balancing authority is responsible for managing the minute-to-minute supply/demand balance for electricity within its borders to assure reliability.

Control zones:Allegheny Power Systems (AP) American Electric Power (AEP)Atlantic Electric Power Company, Inc. (AECO) Baltimore Gas and Electric Company (BGE)ComEd Dayton Power and Light Company (DAY)Delmarva Power and Light Company (DPL) Dominion (DOM)Duquesne Light (DUQ) Jersey Central Power and Light Company (JCPL)Metropolitan Edison Company (METED) PPL Electric Utilities (PPL)PECO Energy (PECO) Pennsylvania Electric Company (PENELEC)Potomac Electric Power Company (PEPCO) Public Service Electric and Gas Company (PSEG)Rockland Electric Company (RECO)

Source: PJM 2009 State of the Markets ReportUpdated August 23, 2010

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Hubs:AEP GEN, AEP-Dayton, Chicago GEN, Chicago, Dominion, Eastern, N. Illinois, New Jersey, Ohio, West INT, Western.

RTO/ISO:PJM Interconnection (PJM) operates the region’s power grid and wholesale electric market:

• Energy market: two-settlement (day ahead and real-time) spot market with locational marginal pricing (prices are calculated at each bus every five minutes)• Capacity Markets• Ancillary services markets• Financial transmission rights (FTR) market• Energy and capacity are also traded bilaterally through brokers and the Intercontinental Exchange (ICE).

PJM 2009 State of the Markets Report (and links to prior annual reports)

Market Monitoring Unit: Monitoring Analytics, LLC – External Market Monitor

Generation/Supply :

Marginal fuel type (2009): Coal (74%) and natural gas (22%)Generating capacity (summer 2009): 167,454 MWCapacity reserve (summer 2009): 40,649 MWReserve margin (summer 2009): 32%

Source: PJM 2009 State of the Markets ReportUpdated August 23, 2010

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http://www.monitoringanalytics.com/reports/PJM_State_of_the_Market/2009.shtml



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Demand

All time peak demand: 144,644 MW (Set August 2, 2006)

Summer Peak Demand (MW):2006: 144,6442007: 139,428 2008: 130,1002009: 126,805

Peak demand change (2008-2009): 2.5% Decline

Prices

Annual Average Day-Ahead Price All Hours (MWh):

PJM Western Hub - A basket of 109 buses from Erie PA to Washington DC (Derived from Energy Velocity data)2006: $50.07/MWh2007: $57.00/MWh2008: $69.88/MWh2009: $38.71/MWh

Contact Information:For questions regarding the material in the PJM section please contact out staff at:

[email protected]

Source: PJM 2009 State of the Markets Report Updated September 7, 2010

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PJM Annual Average Bilateral Prices

Source: Derived from Platts data.

PJM Electric Market: Annual Bilateral Prices

1047Updated May 13, 2009

Annual Average Day Ahead On Peak Prices ($/MWh)2006 2007 2008 2009 2010 5-Year Avg

Mass Hub $69.85 $77.39 $91.55 $46.24 $56.18 $68.23Ny Zone G $75.95 $83.51 $100.99 $49.80 $59.48 $73.94NY Zone J $85.96 $94.15 $112.63 $55.77 $65.76 $82.84NY Zone A $58.70 $64.02 $68.34 $35.54 $43.89 $54.09PJM West $61.90 $71.15 $83.70 $44.60 $53.68 $63.00

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Daily Average of PJM Day-Ahead Prices - All Hours

PJM Electric Market: Last Month’s RTO Prices

Source: Derived from Bloomberg data1131

$0

$25

$50

$75

$100

$125

$150

$175

$200O

ct-01

Oct-

04

Oct-

07

Oct-

10

Oct-

13

Oct-

16

Oct-

19

Oct-

22

Oct-

25

Oct-

28

Oct-

31

Pric

e ($

/MW

h)

N Illinois HubEastern HubWestern HubDominion Hub

30 Day Rolling Average

$0$25$50$75

$100$125$150

2006

2007

2008

2009

2010

2011

Updated: November 01, 2011

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Daily Average of PJM Day-Ahead Prices - All Hours

PJM Electric Market: RTO Prices

Source: Derived from Bloomberg data1048

$0

$25

$50

$75

$100

$125

$150

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$200

$225

$250Ja

n-10

Feb-

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Dec-

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Feb-

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ar-1

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May

-11

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p-11

Oct-

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Pric

e ($

/MW

h)

N Illinois HubEastern HubWestern HubDominion Hub

30 Day Rolling Average

$0

$40

$80

$120

$160

2006

2007

2008

2009

2010

2011


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Eastern Daily Bilateral Day-Ahead On-Peak Prices

PJM Electric Market: Eastern Bilateral Prices

Source: Derived from Platts data1049

$0

$50

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$150

$200

$250Ja

n-10

Feb-

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ar-1

0Ap

r-10

May

-10

Jun-

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l-10

Aug-

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p-10

Oct

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Nov

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Dec

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b-11

Mar

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ay-1

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Into CinergyPJM WestDominion HubWest New YorkMass Hub

Monthly Average

$0$25$50$75

$100$125$150

2006

2007

2008

2009

2010

2011

Pric

e ($

/MW

h)


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Eastern Daily Bilateral Day-Ahead On-Peak Prices

PJM Electric Market: Last Month’s Eastern Bilateral Prices

Source: Derived from Platts data13562

$0

$50

$100

$150

$200

$250O

ct-0

1

Oct

-03

Oct

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Oct

-07

Oct

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Oct

-11

Oct

-13

Oct

-15

Oct

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Oct

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Oct

-21

Oct

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-25

Oct

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Oct

-29

Oct

-31

Into CinergyPJM WestWest New YorkMass HubDominion Hub

Monthly Average

$0

$50

$100

$150

$200

2006

2007

2008

2009

2010

2011

Pric

e ($

/MW

h)


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Implied Heat Rates at Eastern Trading Points - Weekly Avgs.

PJM Electric Market: Eastern Implied Heat Rates

Source: Derived from Platts on-peak electric and natural gas price data1138

0

5,000

10,000

15,000

20,000

25,000

30,000Ja

n-10

Feb-

10M

ar-1

0Ap

r-10

May

-10

Jun-

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l-10

Aug-

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May

-11

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11

Impl

ied

Hea

t Rat

e (B

tu/k

Wh)

East New York Zone J-Transco Zone 6 NYPJM West-Columbia Gas AppalachiaWest New York-Niagara Mass Hub-Tennessee Zone 6


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Weekly Power Generation & Temps. - Mid Atlantic

PJM Electric Market: Generation Output and Temperatures

Source: Derived from EEI and NOAA data1113

0

2,000

4,000

6,000

8,000

10,000

12,000

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Ele

ctric

Gen

erat

ion

(GW

h)

2006-10 Range2011

-80-60-40-20

020406080

Deg

ree

Day

sD

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tion

from

Nor

mal


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Weekly Power Generation & Temps. - Central Industrial Region

PJM Electric Market: CI Generation Output and Temperatures

Source: Derived from EEI and NOAA data1114

-80-60-40-20

020406080

Deg

ree

Day

sD

evia

tion

from

Nor

mal

02,0004,0006,0008,000

10,00012,00014,00016,00018,000

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Ele

ctric

Gen

erat

ion

(GW

h)

2006-10 Range2011


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Federal Energy Regulatory Commission • Market Oversight @ FERC.gov

PJM, NYISO and ISO-NE Capacity Prices

PJM Electric Market: RTO Capacity Prices

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RPM Auction Clearing Prices by Locational Delivery Area (LDA)

0.00

50.00

100.00

150.00

200.00

250.00

300.00

BRA BRA BRA BRA BRA BRA BRA

2007/2008 2008/2009 2009/2010 2010/2011 2011/2012 2012/2013 2013/2014

$/M

W-D

ay

RTOAPSMAACSWMAACEMAACDPL-SouthPS-North (No NJ)PSEGPEPCO

Note: PJM values are for Base Residual Auctions only. ISO-NE results for 2010/2011 and 2011/2012 are based on preliminary FCM auction before pro-rationing and EAS adjustment.Source: Derived from PJM, NYISO and ISO-NE data Updated May 27, 2011

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PJM West Electric Forward Price Curves and Implied Heat Rates

PJM Electric Market: Forward Price Curve

Source: Derived from Nymex data1052

4,000

6,000

8,000

10,000

12,000

14,000

Dec-

11

Jan-

12

Feb-

12

Mar

-12

Apr-1

2

May

-12

Jun-

12

Jul-1

2

Aug-

12

Sep-

12

Oct-1

2

Nov-

12

Impl

ied

Hea

t Rat

e

$0

$10

$20

$30

$40

$50

$60

$70

$80

Ele

ctric

Pric

e ($

/MW

h)

$2

$4

$6

$8

$10

Gas

Pric

e ($

MM

Btu

)

PJM West Columbia Gas Appalachia


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PJM Western Hub Forward and Swap Volumes

PJM Electric Market: Physical & Financial Market Volumes

Notes: ICE on-peak forward (physical) and swap (financial) volumes are for PJM’s Western Hub and include monthly, dual monthly, quarterly, and calendar year contracts traded for each month

Source: Derived from ICE data1050

0

50

100

150

200

250

300Ja

n-11

Feb-

11M

ar-1

1Ap

r-11

May

-11

Jun-

11Ju

l-11

Aug-

11Se

p-11

Oct-

11No

v-11

Dec-

11Ja

n-12

Feb-

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ar-1

2Ap

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May

-12

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l-12

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12Se

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12No

v-12

Dec-

12

Thou

sand

s of

GW

h


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pjm electric market - federal energy regulatory … swmaac emaac dpl-south ps-north (no nj) pseg...

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