PJM Interconnection's wholesale electric energy and capacity markets produced competitive results during 2011, according to the 2011 State of the Market Report for PJM, released Thursday by Monitoring Analytics, LLC, the Independent Market Monitor for PJM.

The report is the Independent Market Monitor's annual assessment of the competitiveness of the wholesale electricity markets that PJM in manages 13 states and the District of Columbia. It analyzes market structure, participant behavior and market performance for each market.

The report noted that gas prices fell and coal prices rose in 2011. Gas prices decreased on average by 10 percent and coal prices increased on average by 19 percent in 2011.

PJM LMPs were lower. The load-weighted average LMP was five percent lower in 2011. PJM capacity prices were lower. PJM average capacity prices were 18 percent lower in 2011. Operating reserve charges increased by 1.0 percent in 2011. Congestion costs decreased in PJM by 29.9 percent in 2011.