PJM power auction prices double for 2017/18
NEW YORK May 23 (Reuters) - U.S. power grid operator PJM said on Friday its capacity auction secured new generation for the 2017/18 delivery year at double last year's prices, potentially offering respite for generators after an unexpected drop last year.
PJM said it procured 167,004 megawatts of capacity resources at a base price of $120, up from $59.37 at last year's auction. The amount of power was down slightly from last year's record of 169,160 megawatts.
The resources sought in the auction cover the period from June 1, 2017 to May 31, 2018. One megawatt is enough to power about 1,000 homes.
Last year the auction results came in lower than expected, impacting several generating companies operating in PJM. Exelon Corp suffered the biggest loss, falling over 7 percent on May 28, 2013, the first trading day after last year's auction.
PJM operates the grid serving 61 million people in 13 Mid-Atlantic and Midwest states from New Jersey to Illinois and the District of Columbia.
A total of 10,975 MW of demand response was procured, down about 1,433 MW from last year's auction. PJM experienced the need for flexible demand response during recent extreme weather, both in September 2013 and January 2014, it said.