PJM Interconnection’s wholesale electricity markets produced competitive results during the first six months of 2016, according to the 2016 Quarterly State of the Market Report for PJM: January through June, according to Monitoring Analytics, LLC, the Independent Market Monitor for PJM.
The market monitor found that energy market prices decreased significantly from the first six months of 2015 as a result of lower fuel prices and lower demand. The load-weighted average real-time price was 36% lower in the first six months of 2016 than in the first six months of 2015, $27.09 per MWh versus $42.30 per MWh.
PJM average real-time load in the first six months of 2016 decreased by 5.3% from the first six months of 2015, from 90,586 MW to 85,800 MW.
Energy prices in PJM in the first six months of 2016 were set, on average, by units operating at, or close to, their short run marginal costs. This is evidence, said the market monitor, of generally competitive behavior and resulted in a competitive market outcome. 8/30/2016