The Value of
a Grid Operator
Running the electric grid requires an independent operator to keep everything in balance. That’s PJM. The grid operator doesn’t generate electricity, set utility rates or make profits; it simply ensures the system operates safely and reliably for everyone who depends on it.
Here’s what that looks like every day:
Keeping the Lights On
PJM monitors the grid 24/7/365, directing the flow of electricity across 13 states and
Washington D.C.
The independent grid operator dispatches the lowest-cost power to where it’s needed most, from among a diverse fleet of generation resources such as natural gas, nuclear, wind, solar, batteries, coal and hydropower.
PJM balances supply and demand in real time to keep the grid stable.
Adapting for the Years Ahead
PJM doesn’t just respond in the moment; it prepares for what’s coming next.
The grid operator studies how electricity use, the generation fleet and technology are changing. PJM is identifying areas where lines and substations may become overburdened in the future and where new transmission is needed to serve new generation resources or electricity users. The grid operator is also exploring where advanced technologies can improve the efficiency of the system.
This long-term planning determines where new transmission is needed to support reliability for decades to come.
Making the System Work
PJM operates several types of competitive wholesale markets through which large volumes of electricity are bought and sold.
The largest of the PJM markets is the Energy Market, which secures electricity to meet consumer demand in real time and the next day.
In addition, PJM operates Ancillary Services Markets that help balance the system as it moves electricity from generating resources to consumers.
PJM also operates a capacity market that’s designed to attract enough electricity to meet future demand at the lowest possible cost.
Power suppliers compete in the PJM capacity market to provide the lowest-cost mix to keep the grid reliable. The market sends price signals that incentivize new and reliable generation resources.
