PJM: Higher Fuel Costs Drove up Q1 Power Prices

PJM: Higher Fuel Costs Drove up Q1 Power Prices

May 16, 2017

by Margarita Fournier, Copyright 2016 by Competitive Assets, LLC.  All rights reserved

On 5/15/17, UtilityDIVE reported that “PJM Interconnection’s wholesale electric energy, capacity and regulation markets are all functioning and producing competitive prices, according to a report from the grid operator’s independent monitor. In the first three months of 2017, wholesale power prices were about 13% higher than in 2016, according to the 2017 Quarterly State of the Market Report, largely due to higher fuel costs. The report concluded that outside of high-demand times, energy prices in the market were typically set by units operating at, or close to, their short run marginal cost.”

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