It doesn’t matter where you live, winter time can bring some major adjustments to your energy bill. Whether it’s cold temperatures, an increased amount of lighting, or just more people frequenting your business, your bill might look a little different.
Think of peak load as the highest period of demand on the grid over a certain time frame. To reliably deliver power to all customers during peak load periods, power plants are guaranteed revenue through long-term capacity delivery auctions and in return those plants guarantee to operate on those days.
In an earlier blog highlighting PJM’s price formation proposal, we discussed one aspect of price formation, which was related to transforming the way reserves are priced into the market. Here, we’ll cover the latest developments on another aspect of price formation, known as fast-start pricing.