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Be A Better Buyer: Understanding Supplier Pricing Tactics in PJM

For all the uncertainty driving today’s complex energy environment, there are two things buyers can almost certainly expect:  Supplier product offerings may not always be as straightforward as they seem.  And the lowest priced proposal may not always result in the lowest cost outcome.  


In PJM’s dynamic marketplace – where retail prices are based on a number of cost components – large energy users are wise to understand how each pricing variable may be presented in supplier offers.  This session will provide buyers with the insight they need to recognize certain pricing tactics and truly delineate which product – and supplier – is delivering them the best value. 


Topics to be covered include: 

  • Capacity cost components, including incremental auction impact, PLC tag adjustment, rate adjustment, and capacity performance
  • Transmission variables, such as PLC tag adjustment, rate adjustment, and transmission enhancement charges  
  • Energy price factors, including various swing provisions, line loss treatment, imbalance, and operating reserves
  • Regulatory changes, such as New Jersey Sales Use Tax (SUT), Maryland Renewable Portfolio Standards (RPS), Illinois Renewable Portfolio Standards (RPS)
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ENGIE Resources, Sales RVP
ENGIE Resources, Supply Director