PJM

**PJM Interconnection (PJM)** is a regional transmission organization (RTO) that plays a critical role in the coordination of wholesale electricity movement across a significant geographic area. Here's a detailed analysis of PJM's functions and characteristics:

1. **Geographical Coverage and Service Population**: PJM operates in 13 states and the District of Columbia, serving over 65 million consumers. It oversees the movement of electricity for these regions, ensuring reliability and safety of the bulk power transmission system.
2. **Regulatory and Operational Framework**: PJM is a federally regulated, non-profit entity that does not sell electricity or own transmission assets like generators or power lines. Its operations are overseen by the Federal Energy Regulatory Commission (FERC), which mandates PJM to maintain the reliability of the grid at the lowest cost possible.
3. **Market Operations**: PJM manages the wholesale electricity market, offering both day-ahead and real-time energy markets. It reconciles supply and demand by procuring energy from sellers for immediate delivery, with prices adjusted every five minutes based on actual system conditions.
4. **Capacity Market and Reliability Standards**: PJM runs a capacity market that forecasts electricity needs three years in advance, ensuring adequate resources are available to meet reliability standards set by the North American Electric Reliability Corporation (NERC). It pays capacity revenues to selected generators based on their location within PJM's footprint.
5. **Ancillary Services Market**: PJM oversees an ancillary services market that helps maintain grid balance through regulation and reserves markets, contributing to overall system reliability.
6. **Innovation and Technology**: PJM embraces innovation, collaborating with industry stakeholders to explore new technologies and advanced solutions. It uses software to monitor and adjust the supply/demand balance continuously, enhancing grid reliability and efficiency.
7. **Challenges and Controversies**: PJM has faced criticism for its capacity market, which has been accused of subsidizing fossil fuels over renewables. There are also concerns about the interconnection process for renewable energy projects, which has been criticized for being slow and bureaucratic.

In conclusion, PJM Interconnection is a vital component of the US electricity infrastructure, responsible for ensuring the reliability and safety of the power grid in its service area. Its operations and market management practices have significant implications for the electricity sector and environmental policies.