Suppliers to the grid run by PJM Interconnection will be paid 15% less next year to be on standby and provide backup electricity, according to the results of an auction released Monday.
Power generators to the largest U.S. grid operator will get $28.92/MWd to provide capacity over a 12-month period starting in mid-2024, down from $34.13/MWd in the previous auction held in June.
The auction had ~2K fewer MW worth of bids compared to the June auction, marking a third straight year of declines - a trend that PJM officials warned could raise concerns about reliability on the grid as the shift away from coal-fired power accelerates.
PJM Interconnection serves 65M people from New Jersey to Illinois; among its 1,000-plus members are companies affiliated with American Electric Power ( AEP ), AES Corp. ( AES ), Algonquin Power ( AQN ), Allete ( ALE ), Alliant Energy ( LNT ), Altus Power ( AMPS ), Avangrid ( AGR ), Brookfield Energy ( BAM ), Consolidated Edison ( ED ), Constellation Energy ( CEG ), Consumers Energy ( CMS ), Dominion Energy ( D ), DTE Energy ( DTE ), Duke Energy ( DUK ), Evergy ( EVRG ), Exelon ( EXC ), New Jersey Resources ( NJR ), NextEra Energy ( NEE ), PPL Corp. ( PPL ), PSEG ( PEG ), Southern Co. ( SO ), UGI Corp. ( UGI )
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PJM published an analysis last week warning it could face a serious shortfall in electric generating capacity in coming years as traditional generator retirements outpace additions .
For further details see:
Payouts on PJM power grid fall 15% in latest power auction