On May 23, the PJM Interconnection’s 2021/2022 Base Residual Auction results were released. The clearing price for the baseline “Rest of RTO” and many other zones increased significantly with the Rest of RTO price surging ~83% to $141/MW-day. ATSI saw the largest increase in capacity prices, rising over 100% to $158/MW-day. BGE saw an 87% increase […]

Wholesale gasoline prices have jumped by more than 50% over the past ten months to their highest levels in more than three years as rising crude oil prices and increasing motor fuel demands boost prices. By far the largest cost component that goes into producing a gallon of gasoline is the input cost of crude […]

What happened? In October 2017, Vistra Energy announced that it would be retiring over 4,000 MW of generation capacity before the summer of 2018. The retirements represented ~5% of ERCOT’s total generation capacity and have significantly reduced the projected reserve margin for the summer 2018 planning period. In the latest Capacity, Demand, and Reserves report […]

Penalty charges for deviating from expected natural gas consumption come primarily from two sources with distinct and separate circumstances. The first way to incur additional charges is to use more (or less) than the contracted and nominated amount of natural gas, which is referred to as a swing tolerance penalty, or just “swing.” Swing charges […]