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Energy Market Update: December 11, 2017

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Electricity price changes are coming to the Pennsylvania, New Jersey and Maryland (PJM) area.

In this week's Energy Market Update, Tim Bigler — Direct Energy Business Energy Strategist — discusses a new PJM proposal and its potential impact on energy prices.

Watch the video below to learn more.

 

 

Electric Prices In The PJM Region

The PJM regional transmission organization (RTO) is looking to change the way megawatt prices are set. Currently, the last unit in determines energy costs for the area.

Under the PJM proposal, LMP would be $20 and wind units would be paid to follow load. This pricing structure would more accurately represent the true incremental cost and send the right price signals.

Potential Cost Impacts

Based on simulations of energy and capacity markets, the region should see a net increase in combined energy and capacity market costs of 2-5 percent.

 

This is our last bi-weekly energy market update for 2017. We'll be back in 2018! Make sure to subscribe to our market updates so you never miss an update. 

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Posted: December 11, 2017

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