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An East Coast View: The Right Price for PJM

Fortnightly Magazine - October 1 1997

balancing service. If PECO's ISO accepted these day-ahead bids to lower its balancing service costs, then the process would be no different from the proposal (em the way the PJM ISO works today.

So what's wrong with a voluntary day-ahead bidding process and paying the winners the market-clearing price for the energy they provide? The only objection PECO and some marketers have raised is that this process might be more efficient than the competing services they would like to provide. That is not a valid reason. t

Samuel C. Thomas is director of transmission services at GPU Energy, a subsidiary of GPU Inc., the parent company of three of the PJM supporting companies.

1"PJM's Brave New World," PUBLIC UTILITIES FORTNIGHTLY, June 1, 1997, p. 4 and "Power Pools: Wired Too Tight?" PUBLIC UTILITIES FORTNIGHTLY, August 1997, p. 4.

2The PJM supporting companies are Public Service Electric and Gas Co., Pennsylvania Power & Light Co., Baltimore Gas & Electric Co., Jersey Central Power & Light Co., Metropolitan Edison Co., Pennsylvania Electric Co., Potomac Electric Power Co., Atlantic City Electric Co., and Delmarva Power & Light Co. Jersey Central, Met Ed, and Pennelec are subsidiaries of GPU Inc.

3Mid-Continent Area Power Pool, 78 FERC ¶ 61,203 at 61,883 (1997).

4Pacific Gas & Electric Co., Order Providing Guidance and Establishing Procedures, Docket Nos. EC96-19-003 and ER96- 1663-003 (July 30, 1997).

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