NEW YORK May 23 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
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
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.
(Reporting by Edward McAllister; Editing by Lisa Shumaker)