PA's Ethan Paterno, an energy markets expert, is quoted in an article in Megawatt Daily. The article offers insight on the recent PJM auction.
Commenting on this topic, Ethan stated that: “PA projects overall downward price pressure across PJM in the upcoming 2019/20 auction, primarily as a result of the PJM [independent system operator's] lower peak demand forecast.”
Ethan continued: “For most of the PJM footprint, PA Consulting expects capacity to clear around $135/MW-day. Certain load pockets, such as the Chicago area's Commonwealth Edicon and PJM's East Mid-Atlantic region, which includes the Delmarva Peninsula, New Jersey and southeastern Pennsylvania, might have prices ranging from $170 to $190/MW-day.”
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Ethan concluded by stating: “Looking forward, PA expects (all else equal) capacity prices across PJM to rebound in the 2020/21 auction as the Base Capacity resource product is eliminated.”