No win-win here, folks, and it's gonna cost you. How much? Let's start with the difference between capacity prices ($195 vs. $167.46) = $27.54 MWD for the SWMAAC zone, plus a monthly credit of $.49 for all customers who have not switched to a competitive provider. This is what Maryland electric consumers will lose in this "victory for competitive markets."
Consumers all over PJM will also lose the health and environmental benefits of the difference between locally generated natural gas-fired electricity and that generated by antique coal burners in the Ohio Valley and shipped hundreds of miles to point of use. They'll also lose the cost of any new transmission lines needed to take the place of the eastern Maryland generation that was "competitively" killed by PJM's electricity markets and the incumbent generators that control them.
But, there may be a tiny bit of poetic justice for these generation bullies waiting down the road, when PJM's "competitive markets" and rabid transmission expansion planning force states with renewable portfolio standards to purchase expensive imported "renewables" from the midwest, which is going to cut into these "competitive" generators' market share. Whom is going to club whom with the Commerce Clause when the time comes? Reply hazy. Ask again later.
If you enjoy long, complicated geek-reads, check out the actual decision here. The court actually did a great job explaining deregulation, PJM, "the grid," and electricity markets. Too bad the law is what it is, because if you take the time to read this, you'll see how deregulation, regional transmission organizations and electricity markets are a farce that inflates your electric rates.
Maryland's problem in setting up a mechanism to stimulate the development of new in-state generation is that it is a deregulated state, and Maryland's contract relied on PJM's "competitive" markets, which are FERC jurisdictional. Let's hope Maryland does a better job next time, now that they know the ground rules.
Do the bullies think that Maryland and New Jersey are going to give up and go away with their tails between their legs now and continue to pay the highest electricity prices in the region because PJM's "competitive markets" don't work? Don't count on it. My Magic 8 Ball says this saga will continue...
Consumers all over PJM will also lose the health and environmental benefits of the difference between locally generated natural gas-fired electricity and that generated by antique coal burners in the Ohio Valley and shipped hundreds of miles to point of use. They'll also lose the cost of any new transmission lines needed to take the place of the eastern Maryland generation that was "competitively" killed by PJM's electricity markets and the incumbent generators that control them.
But, there may be a tiny bit of poetic justice for these generation bullies waiting down the road, when PJM's "competitive markets" and rabid transmission expansion planning force states with renewable portfolio standards to purchase expensive imported "renewables" from the midwest, which is going to cut into these "competitive" generators' market share. Whom is going to club whom with the Commerce Clause when the time comes? Reply hazy. Ask again later.
If you enjoy long, complicated geek-reads, check out the actual decision here. The court actually did a great job explaining deregulation, PJM, "the grid," and electricity markets. Too bad the law is what it is, because if you take the time to read this, you'll see how deregulation, regional transmission organizations and electricity markets are a farce that inflates your electric rates.
Maryland's problem in setting up a mechanism to stimulate the development of new in-state generation is that it is a deregulated state, and Maryland's contract relied on PJM's "competitive" markets, which are FERC jurisdictional. Let's hope Maryland does a better job next time, now that they know the ground rules.
Do the bullies think that Maryland and New Jersey are going to give up and go away with their tails between their legs now and continue to pay the highest electricity prices in the region because PJM's "competitive markets" don't work? Don't count on it. My Magic 8 Ball says this saga will continue...
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