Results from Illinois Energy, Capacity Default Service Procurements Posted

The Illinois Power Agency has posted results from the recent default service procurements at Commonwealth Edison (energy only) and Ameren (energy and capacity).

Average winning prices for the block energy products, which vary by month from June 2012 through February 2015, can be found here.

An alternative view breakdown for ComEd (showing months where no blocks were procured) is also available here.

These products will be blended with the existing portfolio which includes prior block products as well as the legacy swaps and a small amount of long-term bundled energy and REC contracts (and starting in 2013, the rate stability contracts).

Winning bidders of energy products included Dynegy Power Marketing, LLC and Macquarie Energy LLC at Ameren; and Cargill Power Markets, LLC, Exelon Generation Company, LLC, Macquarie Energy LLC, and Shell Energy North America (US), L.P. at ComEd.

At Ameren, capacity was also procured for the 2012/13 delivery year, and for the 2013/14 and 2014/15 delivery years, with the latter two delivery years expected to be served under the MISO's revised capacity market.

For the 2013/14 delivery year, the IPA procured 1,660 MW for Ameren default service at an average price of $3,697.51/MW-year. For the 2014/15 delivery year, the IPA procured 1,110 MW for Ameren default service at an average price of $7,642.36/MW-year.

This forward procurement of capacity for default service is unique, and could result in the capacity rate embedded in default service being divorced from market capacity prices at the time of delivery (and which will be the prevailing price for retail suppliers given their inherent variability in load served).

The monthly capacity prices procured for the 2012/13 delivery period can be found here.

Winning capacity suppliers at Ameren included: Allete Inc., d/b/a Minnesota Power; Ameren Energy Marketing Company; Consumers Energy Company; DTE Energy Trading, Inc.; Dynegy Power Marketing, LLC; Exelon Generation Company, LLC; GenOn Energy Management, LLC; Union Electric Company d/b/a Ameren Missouri; and Wisconsin Public Service Corporation.