Risk management in PJM’s market operation

Ensuring power system reliability is among the top responsibilities of an RTO/ISO. Focusing on operating reliability, this panel will review the PJM's practices on reliability related risk management from the power system operations and market operations viewpoints, recognizing the interrelationship between system and market operations. On one hand, system study, outage coordination and reliability unit commitment directly manage the risk associated with system operating reliability; on the other hand, LMP-based congestion management and ancillary service markets are administered to support operating reliability through economic price signals. Some challenges faced by practical operation will also be discussed in the panel.