Steve Kass and Eric Bratcher discuss the outcome of the recent PJM capacity auction and what it means for electricity customers in PJM. The results of this past auction, and those coming up in the next two years, will provide clarity into future capacity prices that have been lacking for the last three years.
Additionally, the forces that are driving capacity prices today are very different from what they were three years ago. The state of the economy, the presidential administration, and the balance of electricity supply and demand are not the same as it was in May 2018.