1. ©2005 PJM www.pjm.com 1 STATE OF THE MARKET REPORT 2004 Joseph E. Bowring Market Monitor FERC Briefing April 13, 2005

2. ©2005 PJM www.pjm.com 2 State of the Market Conclusions Energy Market results were competitive PJM Capacity Market results were competitive ComEd Capacity Market results were reasonably competitive Regulation market results were competitive –Price based –Cost based Spinning market results were competitive –Cost based FTR market results were competitive

3. ©2005 PJM www.pjm.com 3 PJM Service Territory

4. ©2005 PJM www.pjm.com 4 PJM average hourly load and spot market volume: Calendar year 2004

5. ©2005 PJM www.pjm.com 5 PJM generation by fuel source (GWh): Calendar year 2004

6. ©2005 PJM www.pjm.com 6 Average PJM aggregate supply curves: Summers 2003 and 2004

7. ©2005 PJM www.pjm.com 7 PJM average load: Calendar years 2003 to 2004

8. ©2005 PJM www.pjm.com 8 Figure 2-15 Monthly load-weighted, average LMP: Calendar years 1999 to 2004

9. ©2005 PJM www.pjm.com 9 PJM average hourly LMP (Dollars per MWh): Calendar years 1998 to 2004

10. ©2005 PJM www.pjm.com 10 PJM load-weighted, average LMP (Dollars per MWh): Calendar years 1998 to 2004

11. ©2005 PJM www.pjm.com 11 PJM fuel-cost-adjusted, load-weighted LMP (Dollars per MWh): Calendar years 2003 to 2004

12. ©2005 PJM www.pjm.com 12 PJM and ComEd hourly Energy Market HHI: Phases 1, 2 and 3, 2004

13. ©2005 PJM www.pjm.com 13 PJM and ComEd RSI duration curve: Calendar year 2004

14. ©2005 PJM www.pjm.com 14 Average monthly load-weighted markup indices: Calendar year 2004

15. ©2005 PJM www.pjm.com 15 Average real-time, offer-capped MW: Calendar years 2001 to 2004

16. ©2005 PJM www.pjm.com 16 Capacity obligations to the PJM Capacity Market: Calendar year 2004

17. ©2005 PJM www.pjm.com 17 PJM Daily and Monthly Capacity Credit Market (CCM) performance: Calendar years 2000 to 2004

18. ©2005 PJM www.pjm.com 18 Trends in PJM equivalent demand forced outage rate (EFORd): Calendar years 1994 to 2004

19. ©2004 PJM www.pjm.com ©2003 PJM PJM Net Revenue

20. ©2005 PJM www.pjm.com 20 PJM real-time imports and exports: Calendar year 2004

21. ©2005 PJM www.pjm.com 21 PJM system Regulation Market HHI: Calendar year 2004

22. ©2005 PJM www.pjm.com 22 PJM Mid-Atlantic Region daily average regulation clearing price and estimated opportunity costs: Calendar year 2004

23. ©2005 PJM www.pjm.com 23 PJM system Spinning Reserve Market HHI: Calendar year 2004

24. ©2005 PJM www.pjm.com 24 PJM daily average spinning reserve market-clearing prices: Calendar year 2004

25. ©2005 PJM www.pjm.com 25 Total annual PJM congestion [Dollars (millions)]: Calendar years 1999 to 2004