PJM Interconnection to see 630 MW of generation deactivated in April
The PJM Interconnection has 630 MW scheduled for deactivation in April as part of the nearly 5,700 MW of generation to be retired across the footprint in 2018, according to grid operator data.
Nearly 493 MW of natural gas-fired generation and 138 MW of coal-fired generation is slated to come offline in April. That follows 161 MW of generation already retired this year, which included 157 MW of oil and 3.7 MW of methane.
Gas deactivations include the 68-year-old, 71-MW natural gas-fired Bremo unit 3; the 60-year old, 156-MW natural gas-fired Bremo unit 4; and the 21-year-old, 266-MW natural gas-fired Bellemeade plant, PJM data showed.
Bremo heat rates averaged 10,812 Btu/kWh in 2016, while Bellemeade heat rates were 8,742 Btu/kWh, according to S&P Global Market Intelligence data. In comparison, PJM Dominion Hub on-peak marginal heats rates averaged 12,793 Btu/kWh in 2016.
Spot gas prices at Texas Eastern Transmission M-3 have averaged $6.533/MMBtu year to date, 161% higher than the 2017 average price, according to S&P Global Platts.
High gas prices have meant higher power prices as PJM Western Hub on-peak has averaged roughly $48.25/MWh year to date, up 46.5% from the 2017 average.