Prices Fall In 2023-24 PJM Capacity Auction

PJM has posted results from its base residual auction for capacity (BRA) under the reliability pricing model (RPM) for the 2023-24 delivery year

Clearing prices were generally lower than the 2022-23 delivery year

In the BRA for the 2023-24 delivery year, clearing prices were as follows ($/MW-day):

2023-24 BRA
Rest of RTO    $34.13
MAAC           $49.49
BGE            $69.95 
DPL-South      $69.95 

For comparison, capacity clearing prices in the BRA for 2022-23 were as follows ($/MW-day)

2022-23 BRA
Rest of RTO    $50.00
MAAC           $95.79
EMAAC          $97.86
BGE           $126.50
COMED          $68.96
DEOK           $71.69

Per PJM's auction report, the Adjusted Preliminary Zonal Capacity Price ($/MW-day) resulting from the 2023-24 BRA is:

AE           $49.59
AEP *        $34.20
APS          $34.20
ATSI         $34.20
BGE          $71.62
COMED        $34.20
DAYTON       $34.20
DEOK *       $34.20
DLCO         $34.20
DOM *        $34.20
DPL          $56.57
EKPC *       $34.20
JCPL         $49.59
METED        $49.70
OVEC         $34.20
PECO         $49.59
PENLC        $49.70
PEPCO        $49.70
PL           $49.70
PS           $49.59
RECO         $49.59

*Obligation affected by FRR quantities

**Adjusted Preliminary Zonal Capacity Price includes adjustment to cover funding of PRD Credits.

PJM said that as a result of lower prices, total capacity was procured at a cost of $2.2 billion, compared with approximately $4 billion for the current 2022/2023 Delivery Year.

The total procured capacity in the 2023-24 auction plus the FRR resources represents a 20.3% reserve margin, PJM said