Dive Brief:

• PJM Interconnection's annual capacity auction for 2017-2018 saw 167,004 MW of capacity go at a base rate of $120 per megawatt, more than double last year's base rate of $59.37 per megawatt. 
• The amount of electricity procured is down from 2013's record breaking 169,160 MW. The auction covers the period between June 1, 2017 to the end of May 2018.
• Demand response providers made up 10,975 MW of the capacity, down from 12,408 MW in 2013. 

Dive Insight:

The boost in power prices could herald a wider recovery for vertically-integrated utilities and independent power producers. When generators suffered from low prices last year, Exelon was hit hardest after its share prices fell 7% on the first day of trading following 2013's capacity auction. 

Prices had been expected to bounce back from their three year low after the Federal Energy Regulatory Commission placed a cap on supply imports and limited demand response procurements as well.