Climate Changed

U.S. Power Grid Payout Sends Surprise Boost to Coal, Nuclear

  • PJM capacity price soars 83% as auction beats estimates
  • Grid-wide figure for 2021-2022 highest in three years

Photographer: Luke Sharrett/Bloomberg

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Embattled coal and nuclear power-plant operators stand to get a lot more money to provide capacity to the biggest U.S. electricity grid -- if they can hold on for another three years.

Generators are going to make $140 a megawatt-dayBloomberg Terminal for the year starting in June 2021, 83 percent more than the prior yearBloomberg Terminal, according to the results Wednesday of an auction by PJM Interconnection LLC. It was the first increase in three years and 19 percent more than the highest analyst estimateBloomberg Terminal compiled by Bloomberg. They ranged from $75 to $118.