PJM power auction could bring lower electricity prices in 2021 RSS Feed

PJM power auction could bring lower electricity prices in 2021

Delmarva Power customers couldsee slightly lower rates for electricity in coming years.

Grid operator PJM Interconnection reported its auction produced higher price for a period from a one-year period beginning in June 2021.

Prices were up from the past auction, due in part to transmission limits.

However, Jacob Sneeden of Delmarva Power said that the rates should reduce electric charges by about $5.20 a month in the one-year period.

The cost of power is passed along by Delmarva at no profitwith the company making its return on the costs of delivering the power.

“PJM’s markets continue to retain and attract a diverse set of resources and promote competition to support reliability of the grid,” said PJM CEO Andy Ott. “The high-performing resources participating in our markets ensure that customers have reliable electricity at the lowest reasonable cost.”

The auction attracted a year-to-year increase in the amount of demand response, energy efficiency and renewable resources – solar and wind. Demand response is the use of devices by Delmarva and other utilities that cycle down air-conditioning systems.

PJM saw an increase in coal and natural gas generation from last year, with nuclear generation declining.

Read full article at Delaware BusinessNow