An "expensive lesson" that grid operators and policymakers could have learned form free reading our material.
Utility Dive (12/3/24) reports: "Death, taxes and complaints about ISO/RTO markets are three of the most certain things in life. The Nov. 13 opinion piece in Utility Dive, 'PJM sees ‘easy button’ to meet power needs, but Appalachians see higher bills and more pollution,' includes a number of complaints about PJM’s electricity market. PJM held its periodic Base Residual Auction this summer to make sure its 13-state region has enough electric generating capacity to satisfy electricity demand during delivery year 2025-26 (June 1, 2025 – May 31, 2026). Power plant owners submit competitive bids based on what they are willing to accept to make sure their power plants will be available when needed. The purpose of this bidding process is to acquire capacity at the lowest cost. The results of the auction made headlines because of the sky-high prices that electricity consumers in the PJM region will have to pay to ensure that enough electric generating capacity is available to keep the lights on. The cost of capacity increased from $2.2 billion in the previous year’s auction to $14.7 billion in this most recent auction, an increase of almost 570%. (The cost of capacity auctions over the prior ten years has varied from $2.2 billion to $10.9 billion.) Many experts think high capacity prices will continue in the future...Several factors drove these record-setting capacity prices. The primary reason for the high capacity prices is an increase in electricity demand and a decrease in supply due to the retirement of existing generating capacity...Therefore, common sense suggests that we should increase the supply of electricity, yet the opposite is happening because coal-fired power plants continue to retire at an alarming pace. "
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"Energy is the lifeblood of the economy and consumers deserve to have it be abundant, reliable, and affordable...The disastrous Biden policies that have shackled our supplies and crippled economic prosperity must be eradicated. A course correction come January will be most welcome."
– Kristen Walker,
American Consumer Institute
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