Earlier this year, we explained why residents of the PJM area, America’s largest electricity market, have seen their power bills rise by ~20%. We argued that the main culprit was PJM’s auction design choices and how PJM models demand and supply. To better understand the extent of the problem, our Energy Model team spent the last 6 months reverse-engineering PJM’s main system model, the ‘Reserve Requirement Study’, which to date has been a black box. This study is how PJM decides what type of and...