Spatial market integration upon expanding PJM electricity market

This paper conducts an empirical analysis to examine the degree of market integration in the PJM electricity market as a way to evaluate the transmission open access and market efficiency. PJM electricity market was established in 1997. However, from May 2004 to May 2005, the market was expanded greatly. The impact of the market expansion on the degree of market integration is studied. The test results indicate a high degree of market integration after the market expansion.