Retail Suppliers Facing 25% Increase in Capacity Costs for 2017/18 From Transitional CP Auction

Retail suppliers are facing a 23% increase in capacity prices for the 2017/18 versus the prices established in the base residual auction as a result of the capacity performance transitional auction held this week

Specifically, PJM said that the recent 2017/18 capacity performance transitional auction resulted in a capacity performance clearing price of $151.50 per megawatt-day

More instructive is the Adjusted Zonal Net Load Price ($/MW-day), which are shown below from the original 2017-18 base residual auction (which did not feature capacity performance), and the capacity performance transitional auction

    2017-18 Zonal Net Load Price ($/MW-day)
Zone       2017-18 BRA      CP Transitional
                              Auction
AE           $119.92         $147.61
AEP          $119.81         $147.50
APS          $119.81         $147.50
ATSI         $119.81         $147.50
BGE          $119.92         $147.61
COMED        $119.81         $147.50
DAYTON       $119.81         $147.50
DEOK         $119.81         $147.50
DLCO         $119.81         $147.50
DOM          $119.81         $147.50
DPL          $119.92         $147.61
EKPC         $119.81         $147.50
JCPL         $119.92         $147.61
METED        $119.92         $147.61
PECO         $119.92         $147.61
PENLC        $119.92         $147.61
PEPCO        $119.92         $147.61
PL           $118.18         $145.87
PS           $175.21         $202.90
RECO         $119.92         $147.61