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-day for the year starting in June 2021, up 83% from a year earlier, according to the results of a capacity auction earlier this month that were released Wednesday. Analyst estimates compiled by Bloomberg since April ranged from $75 to $118.