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Payments Plunge on Largest U.S. Grid, Threatening Closures

  • Dynegy, Talen Energy pace losses among producers after auction
  • Auction cleared at $100 a megawatt-day, down 39% from year ago
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Payments to power generators for supplying the biggest U.S. electricity grid slid in an auction this month, increasing pressure on plants already struggling to keep running amid low wholesale prices. Dynegy Inc. and Talen Energy Corp. fell.

Payouts to suppliers who can guarantee capacity in the year starting June 2019 cleared at $100 a megawatt-day, grid operator PJM Interconnection LLC said on its website Tuesday. That’s down 39 percent from $164.77 in a sale last year. Valley Forge, Pennsylvania-based PJM manages a grid delivering power to more than 61 million people across parts of the U.S. Midwest, Mid-Atlantic and Northeast.