The right price in the energy market should not only reflect the true incremental costs of resources required to serve demand, but also drive incentives for providing the flexibility needed to operate the system given the constantly changing nature of its conditions. Inaccurate energy market pricing that does not adequately value the reliability attributes provided by needed resources, regardless of fuel type, is likely to result in a less-efficient resource mix to maintain a reliable grid. PJM recommends investigating energy and reserve price formation enhancements, including how energy and reserve prices are calculated and how prices are formed during shortage conditions, which could more transparently reveal the true cost of meeting system reliability needs.