Much like other commodities, electricity is bought, sold and traded in wholesale and retail markets. PJM administers the competitive wholesale markets for large volumes of electricity across 13 states and the District of Columbia. From the PJM wholesale market, electricity is then sold in smaller quantities through retail electricity providers to end-users, such as homes and businesses.
In the following video, Lynn Horning, PJM’s manager of Member Relations, briefly explains the several different wholesale market structures PJM uses, including Energy, Capacity and Ancillary Services markets.
You can also learn more about PJM’s markets on the freshly revamped Learning Center.