Market based regulation for the PJM electricity market

This paper describes the functional requirements, design and implementation of the PJM market based regulation (MBR) application. MBR provides the day-ahead and real-time functions to meet the regulation requirements for the next market-day through a process of competitive bidding and procurement. Regulation bids submitted by market participants are scheduled and dispatched using a security constrained economic dispatch methodology that includes the various market rules. The MBR application simultaneously provides the PJM ISO with information for real-time regulation evaluation and dispatch. The paper also describes the PJM regulation market results since inception.