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Constellation: Longer-Term Default Service Procurements Would Give More Protection To Customers During Periods Of Market Volatility
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During a District of Columbia PSC hearing concerning default service and affordability, Mason Emnett, Senior Vice President of Public Policy at Constellation, noted that longer-term SOS contracts would give more protection to customers during periods of market volatility
Emnett discussed the actions that Constellation was undertaking to address high wholesale prices, such as repowering, re-starting, and uprating generation, which will bring prices down, and submitting new projects into the PJM queue
Emnett then cited actions that the PSC could take
"There are things that the Commission could be doing as well. First, we think, protect customers. As mentioned earlier, the current SOS auction design smooths price changes over time, but longer-term procurements would give more protection to customers during periods of market volatility. It's like a house mortgage. I can choose a variable rate for a couple of years, or I can lock-in a fixed rate for a longer time. I like fixed rates, because I can plan for the costs, and I don't have to worry about interest rates spiking. The same is true with power costs. Suppliers like Constellation like longer-term transactions 'cause that gives us the stability that we need to invest in our generation. And customers benefit by stabilizing the power portion of their bill over a long period of time," Emnett said
During a later Q&A from Commissioners, Emnett again emphasized long-term contracts for investor certainty to build new generation, saying that confidence in PJM capacity auction prices going forward, and confidence that the market will be allowed to work, is needed to make financial decisions based on PJM auction prices, with long-term contracts with specific loads providing more certainty. However, such discussion during the Q&A did not delve in retail SOS contract length as Emnett's earlier comments did
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June 3, 2026
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Copyright 2026 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
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