Understanding Contract Capacity Prices in Energy Markets
Exploring the nuances of contract capacity prices in the energy sector, this content delves into the differences between contract capacity prices and PJM capacity auction clearing prices, shedding light on the financial implications for generators and ratepayers.
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Hughes v. Talen Energy Mktg., LLC, 136 S.Ct. 1288 (April 19, 2016) Seth Hollander Assistant Attorney General , Connecticut Office of the Attorney General * The views expressed here are not necessarily the views of the Connecticut Office of the Attorney General
Difference Between Contract Capacity Price and PJM Capacity Auction Clearing Price $10/kW Month Contract Capacity Price $4.50/kW Month Capacity Auction Clearing Price $10 $4.50 = $5.50 $5.50 * Quantity = Contract Payment from EDC/ratepayers to generator
Difference Between Contract Capacity Price and PJM Capacity Auction Clearing Price $10/kW Month Contract Capacity Price $7/kW Month Capacity Auction Clearing Price $10 $7 = $3 $3 * Quantity = Contract Payment from EDC/ratepayers to generator
Difference Between Contract Capacity Price and PJM Capacity Auction Clearing Price $15/kW Month Capacity Auction Clearing Price $10/kW Month Contract Capacity Price $10 $15 = $-5 $-5 * Quantity = Contract Payment from generator to EDC/ratepayers
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