So, PJM waited until close of business (on a Friday) to release the results. How predictable of them.
Anyhow, the headlines are that a record amount of new generation, demand response and energy efficiency cleared.
"The RPM auction procured a record amount of new generation in one year, 4,900 megawatts (MW). In addition, capacity imported from west of PJM increased about 8 percent from last year to 4,335 MW.
In addition to new generation, most of it natural gas-fired, the capacity auction also procured 14,833 MW of demand response, a 5 percent increase over last year, and energy efficiency, a 12 percent increase. The amount of demand response was also a record for PJM, as well as for renewable generation. Solar increased to 56 MW of solar -- a 22 percent increase over last year - and wind increased to 796 MW - a 15 percent increase."
The RTO base price was $136 per MW, with a higher price of $167 per MW in the mid-Atlantic region (Atlantic City Electric, Baltimore Gas and Electric Company, Delmarva Power, Jersey Central Power and Light Company (JCP&L), Metropolitan Edison Company (Met-Ed), PECO, Pennsylvania Electric Company (Penelec), Pepco, PPL Electric Utilities, Public Service Electric and Gas Company (PSE&G) and Rockland Electric Company).
FirstEnergy's northern Ohio territory was the big loser though, with a price of $357 per MW. That's extra money that goes in FE's pocket and out of yours. Remember when AEP's Mikey Morris had a big tantrum last year about coal plant closures and pumped millions into lobbying to try to change the rules? Yeah, well FE's Tony the Trickster kept his mouth and wallet shut and got busy scheming to make it work for his company. FE announced the early closure of a whole bunch of their coal plants, mostly in Ohio. The closure of so much generation in one area won FE some profitable RMR contracts to keep certain plants open, as well as an "order" from PJM to build $1B of transmission improvements made necessary by the closures, AND a capacity price more than double the RTO base price. It's like winning the utility lottery for FE's stockholders. Unfortunately, that translates into higher electric bills for consumers because FE's gain is your pain.
Most of the new generation is gas-fired and located in the east, however nobody seems to be quite sure what cleared and what didn't. Most company reps. weren't available for comment after 5:00 on Friday. In the states of NJ and MD, where a battle against PJM and FERC has been taking place to build new generation, here's what information is available:
"New Jersey power company NRG Energy Inc said its proposed New Jersey project did not clear the auction.
"We're disappointed but will continue to develop the project," said NRG spokesman David Gaier."
The rest of what I've got is unconfirmed rumor at this point, but supposedly MD's plant cleared, along with Dominion's Warren Co., VA plant. In NJ the following plants probably cleared: LS’s West Deptford plant, PSE&G's Sewaren, and Hess's Newark plant, one of the LCAPP projects. Calpine's Garrison, DE project likely cleared as well. Hopefully the press will have a chance to confirm this on Monday.
So, what does this indicate for the PATH Project? I'm not going to speculate, since PJM's decisions about PATH have never been logical or based in reality. It was always about what the parent companies wanted. And where are those companies now? They're playing dodge ball in Ohio. Might as well ask the Magic 8 Ball... "Reply hazy, try again." Well, there you have it.
Anyhow, the headlines are that a record amount of new generation, demand response and energy efficiency cleared.
"The RPM auction procured a record amount of new generation in one year, 4,900 megawatts (MW). In addition, capacity imported from west of PJM increased about 8 percent from last year to 4,335 MW.
In addition to new generation, most of it natural gas-fired, the capacity auction also procured 14,833 MW of demand response, a 5 percent increase over last year, and energy efficiency, a 12 percent increase. The amount of demand response was also a record for PJM, as well as for renewable generation. Solar increased to 56 MW of solar -- a 22 percent increase over last year - and wind increased to 796 MW - a 15 percent increase."
The RTO base price was $136 per MW, with a higher price of $167 per MW in the mid-Atlantic region (Atlantic City Electric, Baltimore Gas and Electric Company, Delmarva Power, Jersey Central Power and Light Company (JCP&L), Metropolitan Edison Company (Met-Ed), PECO, Pennsylvania Electric Company (Penelec), Pepco, PPL Electric Utilities, Public Service Electric and Gas Company (PSE&G) and Rockland Electric Company).
FirstEnergy's northern Ohio territory was the big loser though, with a price of $357 per MW. That's extra money that goes in FE's pocket and out of yours. Remember when AEP's Mikey Morris had a big tantrum last year about coal plant closures and pumped millions into lobbying to try to change the rules? Yeah, well FE's Tony the Trickster kept his mouth and wallet shut and got busy scheming to make it work for his company. FE announced the early closure of a whole bunch of their coal plants, mostly in Ohio. The closure of so much generation in one area won FE some profitable RMR contracts to keep certain plants open, as well as an "order" from PJM to build $1B of transmission improvements made necessary by the closures, AND a capacity price more than double the RTO base price. It's like winning the utility lottery for FE's stockholders. Unfortunately, that translates into higher electric bills for consumers because FE's gain is your pain.
Most of the new generation is gas-fired and located in the east, however nobody seems to be quite sure what cleared and what didn't. Most company reps. weren't available for comment after 5:00 on Friday. In the states of NJ and MD, where a battle against PJM and FERC has been taking place to build new generation, here's what information is available:
"New Jersey power company NRG Energy Inc said its proposed New Jersey project did not clear the auction.
"We're disappointed but will continue to develop the project," said NRG spokesman David Gaier."
The rest of what I've got is unconfirmed rumor at this point, but supposedly MD's plant cleared, along with Dominion's Warren Co., VA plant. In NJ the following plants probably cleared: LS’s West Deptford plant, PSE&G's Sewaren, and Hess's Newark plant, one of the LCAPP projects. Calpine's Garrison, DE project likely cleared as well. Hopefully the press will have a chance to confirm this on Monday.
So, what does this indicate for the PATH Project? I'm not going to speculate, since PJM's decisions about PATH have never been logical or based in reality. It was always about what the parent companies wanted. And where are those companies now? They're playing dodge ball in Ohio. Might as well ask the Magic 8 Ball... "Reply hazy, try again." Well, there you have it.
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