Dive Brief:
- The PJM Interconnection should change its market rules to improve its competitiveness and make it more efficient, according to the grid operator's market monitor.
- About 14,600 MW, or 8% of PJM's installed capacity, is at risk of retiring early because of flaws in the market, according to the 2013 State of the Market report, released Thursday.
- Increased demand caused by weather and higher fuel costs drove up electric prices 9.7% to $38.66/MWh in 2013 from the year. Capacity prices in PJM increased 17.8% last year.
Dive Insight:
“The state of the PJM markets in 2013 was good, but there are significant issues that must be addressed,” the report said. “The results of the energy market, the results of the capacity market and the results of the regulation market were competitive.”
This report is a signal that changes will be coming to PJM's market rules.
