Back On The Grid

U.S. Electricity Markets Overview


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This podcast is a primer on electricity markets in the United States for people who don’t have time to read 200 page reports (though you totally should). We'll start with what's on your bill, look at wholesale auctions for electricity + bilateral trading, and wrap with some market issues like fraud, supply chains, and stranded assets.

Recommended reading to add wrinkles to your brain: https://www.monitoringanalytics.com/reports/PJM_State_of_the_Market/2024/2024q2-som-pjm-sec3.pdf

Timestamps:

  • 00:00-Intro
  • 00:38-Structure of the episode
  • 01:10-T&D Part of Bill
  • 01:45-Energy Part of Your Bill
  • 02:20-Who Sells Power?
  • 03:50-Example of a Bilateral Trade
  • 05:30-Wholesale Electricity Auctions: ISO/RTOs
  • 07:50-Nodal Pricing
  • 08:30-Market Power Example
  • 09:30-Market Fraud
  • 10:46-Public Utility Commissions
  • 12:17-Power Capacity & Ancillary Service Markets
  • 13:28-Power vs Energy; MW vs MWh
  • 14:00-Issues with Current Markets
  • 16:00-Rider Chargers on Your Bill
  • 18:00-Rooftop Solar vs Average Market Prices
  • 20:00-Future Reading: INCs, DECs, UTCs, FTRs
  • ...more
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    Back On The GridBy Nick Sorokin