Climate Changed

Payouts to U.S. Power Generators Climb 83% in PJM Auction

  • Capacity price for largest U.S. power grid $140/megawatt-day
  • Figure for 2021-2022 compares with $76.53 for year earlier

Photographer: Steve Hockstein/Bloomberg

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Generators that provide capacity to the largest U.S. power grid are going to get paid a lot more for guaranteeing electricity when the market needs it.

Suppliers to PJM Interconnection LLC -- which serves more than 65 million people from Chicago to Washington -- will receive $140 a megawatt-dayBloomberg Terminal for the year starting in June 2021, up 83% from a year earlierBloomberg Terminal, according to the results of a capacity auction earlier this month that were released Wednesday. Analyst estimatesBloomberg Terminal compiled by Bloomberg since April ranged from $75 to $118.