So far in 2014, PJM has saved its members $144 million in production costs using a process called “Perfect Dispatch.”
Perfect Dispatch measures the ability of PJM’s dispatch operations to minimize system production costs while still meeting reliability needs. The “perfect dispatch” for a given day is the hypothetical commitment of generators and dispatch that would result in the lowest production cost while maintaining reliability, and can only happen if all system conditions (such as the load forecast, generator availability and performance, and transmission outages and constraints) occur exactly as predicted.
While that’s not realistically achievable, it still acts as a great baseline to measure performance.
PJM scores how close to “perfect” its operations are by comparing its actual production costs to the optimal figure, setting goals each year to meet a certain percentage of Perfect Dispatch. Because of PJM’s size, even small improvements in dispatch performance can produce large savings for members. Since it was introduced in 2008, Perfect Dispatch has yielded more than $986 million in savings to PJM members.
Beyond monetary savings, Perfect Dispatch reduces wear, tear and emissions from generation resources because they are used more efficiently. You can learn more about how PJM works to protect reliability fairly and efficiently in the PJM Learning Center.