Case study

PJM electricity market

Electric power competition that works

PA's case study of the leading example of successful wholesale electricity deregulation and restructuring in North America.

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The PJM electricity market, a competitive wholesale electricity market that serves the Mid-Atlantic region, is frequently cited as the leading example of successful wholesale electricity deregulation and restructuring in North America. This PA Consulting Group case study explores a number of the factors and initiatives undertaken by PJM market members and the PJM independent system operator that have contributed to the market’s success.

Government officials, regulators, energy industry executives - indeed, anyone with an interest in the future health of the electric power industry - should consider PJM’s successful operating history and systems when contemplating the ability of other North American regions to successfully deregulate their electricity markets. The value of PJM as an example of successful electric power restructuring is particularly important in light of California’s current electric power problems.

In preparing this case study, PA has drawn on its substantial experience working with PJM and many of the participants in its markets, as well as the views of other knowledgeable industry sources with PJM experience.