Dive Summary:

• At its annual capacity auction last week, PJM Interconnection secured 169,160 megawatts (MW) of power supplies for 2016/2017 at the rate of $59.37 a megawatt per day. That’s 56% lower than last year’s base price.
• “Prices were generally lower than last year’s auction due to competition from new, gas-fired generation, low growth in demand because of the slow economy and increased imports from other regions, primarily to the west of PJM,” noted Andrew Ott, PJM’s senior vice president of markets.
• In 2012, PJM, the largest U.S. grid operator, secured 164,500 MW of power for $136 per MW.

From the article:
“PJM said the auction procured a record amount of new generation, 5,463 MW, up 11 percent from 2012. The new generation will help replace coal-fired units expected to retire in the next few years.”