Panel session on “experience with operating genco assets in RTO markets”: PJM´s experience with operating energy and ancillary-service markets

PJM has continued to make several modifications and enhancements to its Energy and Ancillary-Service Markets over the past year. As of December 1^st, 2008, PJM has made changes to its Balancing Operating Reserve (BOR) mechanism. These modifications were designed: • To improve market efficiency by providing an incentive to market participants to submit their day-ahead bids as closely as possible to what they expect in the Real-Time • To enhance system reliability by providing an incentive for units to follow PJM dispatch instructions