BUI - PJM capacity prices sink 64% in first auction in three years

The largest U.S. power grid operator says it procured resources in its capacity auction for 2022-23 at $50/MW-day, 64% lower than the $140/MW-day set in the most recent auction in 2018.PJM Interconnection, which serves more than 65M people between New Jersey and Illinois, says prices in this year's auction were down sharply due to a lower load forecast and reserve requirement that reduces the amount of capacity needed, lower estimated costs for building new generators, and overall lower offer prices from resources participating in the auction.The PJM auction is the single most important event for several power generators in the eastern U.S., including Exelon (EXC), NRG Energy (NRG), Public Service Enterprise Group (PEG), Vistra (VST) and Calpine Corp., because it dictates a large portion of their future revenue.ETFs: [[UTG]], [[XLU]], [[VPU]], [[BUI]], [[GUT]], [[FUTY]], [[IDU]], [[RYU]], [[FXU]], [[UPW]]The results showed that the capacity price for the ComEd Chicago-area zone was $68.96/MW-day

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PJM capacity prices sink 64% in first auction in three years