PJM Interconnection is a regional transmission organization (RTO) that coordinates the movement of wholesale electricity in all or parts of 13 states and the District of Columbia. Acting as a neutral, independent party, PJM operates a competitive wholesale electricity market and manages the high-voltage electricity grid to ensure reliability for more than 51 million people. PJM’s long-term regional planning process provides a broad, interstate perspective that identifies the most effective and cost-efficient improvements to the grid to ensure reliability and economic benefits on a system wide basis.
PJM’s “wholesale” market is focused on entities that buy and sell electricity but do not actually consume the electricity. The retail market is focused on entities that buy electricity from the wholesale market or produce the electricity, and then sell the electricity to a customer that physically consumes the electricity. For example, a local utility may purchase wholesale electricity in the PJM market and then sell it to the customer for their retail electricity consumption needs. PJM does not interact directly with electricity consumers. PJM interacts with the companies that provide electricity to consumers.