PA's Ethan Paterno, an energy markets expert, is quoted in an article in SNL Financial. The article provides insight on the recent Pennsylvania/Jersey/Maryland ("PJM") Interconnection LLP 2019/2020 Base Residual Auction.
Commenting on this topic, Ethan states that: “the PJM ISO's lower peak demand forecast was released in January 2016. PA projects the RTO to clear at $135/MW-day.”
Ethan continues: “Outside of the RTO, PA projects only the ComEd and EMAAC zones to separate, at pricing in the $170-$190/MW-day range. Potential uncertainties that could impact these forecasts include new combined cycle entry, as PA projects three new projects to clear, and the bidding strategy of Exelon Corp.'s nuclear plants in Illinois and eastern PJM.”
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Ethan concludes 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.”