The Integration of AEP into PJM and Its Early Impacts

A recent article in The Wall Street Journal based on data provided by PJM asserted that wholesale prices have fallen in some Eastern states since several large Midwestern utilities joined PJM. Yet the econometric model described here yields the opposite conclusion. Thus, it seems way too early for PJM to be making broad pronouncements regarding its impact on the provision of electric service within the area it controls.