By Robert Walton | July 24, 2015
Exelon Corp. and Dynegy stand to be the big beneficiaries of new market rules in PJM Interconnection, bolstered by fuel security that should keep their plants running in the most adverse scenarios.
PJM is instituting new capacity performance standards after poor generator performance during the polar vortex of the 2013-2014 winter, when fuel interruptions took more than 20% of generation offline.
Dynegy’s gas-fired facilities are located on major pipelines less prone to inturruption, Bloomberg notes, and Exelon’s nuclear units are not vulnerable to fuel cutoffs from bad weather. AEP could be another big beneficiary, with its fleet of coal plants, although it increasingly moving to gas.