Energy storage power station electricity price settlement

Are IPPs better positioned to meet PJM's energy crisis?

Essentially, EPSA’s position is that IPPs are blameless for the increased prices and can respond to “price signals” by PJM to produce more electricity, and that IPPs are better positioned to meet this energy crisis than vertically integrated electric utilities. The argument is false for the following reasons.

Are independent power producers blaming PJM for rising electricity prices?

Utility Dive recently published a piece about Independent Power Producers (IPPs) pushing back on critics who blame IPPs for rising electricity prices in the areas served by the PJM Interconnection covering 67 million people across a region stretching from the Atlantic coast to Chicago.

Will Shapiro stabilize spiking electricity prices?

Pennsylvania Gov. Josh Shapiro secured a pledge to stabilize spiking prices from the regional electrical grid operator. But critics point to ongoing structural challenges as thousands of (mostly green) energy projects await entry to the grid.

Why are consumer electricity rates rising faster than IPPs?

First and foremost, it is scarcity pricing in deregulated electricity markets that is driving up consumer electricity rates faster than IPPs are building power plants. Why? The IPPs understand that they make more money by creating scarcity or withholding supply.

Should PJM watch electricity prices skyrocket?

After all, if price signals were sufficient, PJM and other competitive markets would not be in this position of watching electricity prices skyrocket because of scarcity. As they say, the proof is in the pudding.

Why is PJM failing to bring new power online?

The fact that PJM is failing to bring new power online is not a surprise. PJM’s capacity market was never intended to provide incentives to build new generators. It was designed to pay power plants that are idle for much of the year just enough to make sure that they would be available for peak demand days in winter and summer.