PJM Interconnection

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PJM Interconnection
Founded 1997
Headquarters Valley Forge, Pa
Products Energy Information & Data
Website http://www.pjm.com

PJM Interconnection is a regional transmission organization (RTO) that coordinates the movement of wholesale electricity in all or parts of Delaware, Illinois, Indiana, Kentucky, Maryland, Michigan, New Jersey, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, West Virginia and the District of Columbia.

  • Acting neutrally and independently, PJM operates the world’s largest competitive wholesale electricity market and ensures the reliability of the largest centrally dispatched grid in the world.
  • Using sophisticated information technology, PJM provides real-time information to market participants to support their daily transactions and business decision-making.
  • PJM’s role as a federally regulated RTO means that it acts independently and impartially in managing the regional transmission system and the wholesale electricity market.
  • PJM manages a sophisticated regional planning process for generation and transmission expansion to ensure the continued reliability of the electric system.

PJM serves about 51 million people. The company dispatches 164,905 megawatts (MW) of generating capacity over 56,250 miles of transmission lines. PJM has administered about $71 billion in energy and energy-service trades since the regional markets opened in 1997.

PJM’s Operations[edit]

PJM's staff monitors the high-voltage transmission grid 24 hours a day, seven days a week. PJM keeps the electricity supply and demand in balance by telling power producers how much energy should be generated and by adjusting import and export transactions.

The company coordinates the continuous buying, selling and delivery of wholesale electricity through robust, open and competitive markets. In operating the markets, PJM balances the needs of suppliers, wholesale customers and other market participants and continuously monitors market behavior.

PJM’s Online Tools[edit]

PJM’s wholesale electricity market is similar to a stock exchange. It establishes a market price for electricity by matching supply with demand. Online eTools make trading easy for members/customers by enabling them to submit bids and offers and providing them with continuous real-time data. Market participants can follow market fluctuations as they happen and make informed decisions rapidly. Participants can respond to high prices and bring resources to the region at times of high demand. PJM keeps markets fair by making prices transparent through eTools.

PJM is responsible for maintaining the integrity of the regional power grid and for managing changes and additions to the grid to accommodate new generating plants, substations and transmission lines. PJM analyzes and forecasts the future electricity needs of the region. The company ensures that the growth of the electric system takes place efficiently, in an orderly, planned fashion, and that reliability is maintained.

  • PJM develops innovative programs, such as demand-response initiatives and efforts to support Renewable Energy Certificates, to help expand supply options and keep prices competitive. [1]


  • 1927: Three utilities form the world’s first power pool
  • 1981: Membership grows to eight investor owned utilities
  • 1993: PJM formed as an independent entity
  • 1997: PJM becomes a limited liability company under the laws of the State of Delaware with an independent board of managers and a membership open to non-utilities
  • 1998: PJM becomes an Independent System Operator pursuant to FERC Order 888, membership increases to over 200 members
  • 2002: PJM ISO becomes a FERC approved Regional Transmission Organization pursuant to Order 2000 [2]


  1. PJM Overview. PJM Interconnection.
  2. PJM History. Global Regulatory Network.