The Delmarva Power region will see higher prices for peak power in coming years based on an auction from grid operator PJM Interconnection. The auction procures power supply resources to meet consumers’ peak period electricity needs three years from now.
The price of power in the region that includes Delmarva Power rose from $120 per megawatt day to $187. RTO Insider (subscription) reported that transmission congestion and power plant retirements contributed to the higher rates in some areas within the sprawling PJM region that encompass parts of the Mid-Atlantic and Midwest.
Power Magazine reported that the auction spells trouble for coal, nuclear and perhaps even renewables, due to lower prices in much of the PJM region. New Jersey’s largest utility, PSE&G has warned that its nuclear plants, which include the Salem complex, could become unprofitable in the future.
“The results show that PJM markets continue to achieve what they were originally intended to accomplish, ensuring reliability at the lowest reasonable cost,” said Andrew L. Ott, PJM CEO. “Overall response to this auction, both in participation and competitive bids, reflects the market’s ability to attract efficient, high performing and competitive resources that support reliability.”
PJM works three years in advance to ensure adequate power supplies will be available during extreme weather or other system emergencies to meet consumers’ demand for electricity. Suppliers were vetted in their ability to provide reliable power during such period.
Utilities, like Delmarva, then bid for power for non-peak periods.
PJM members in the region also include Atlantic City Electric, Baltimore Gas and Electric Company, Jersey City Power & Light, Met-Ed, PECO, Penelec, Pepco, PP&L, Public Service Electric and Gas Co., and Rockland Electric.
Demand for power remains sluggish as conservation efforts take hold and industrial employers close or launch conservation programs of their own.
In recent years, Delmarva has offered a peak power program that employs systems that temporarily lower the cycling of air-conditioning systems.Co Conservation programs elsewhere help pay for LED bulbs and even in some cases old refrigerators.
