Dynegy to Evaluate Impact of PJM Transition Auctions on Retail Contracts

Dynegy, a retail energy provider serving businesses and residents in Illinois, Ohio, and Pennsylvania, on September 8 reported its results from PJM Interconnection’s capacity auction for planning year 2018/19 and transition auction for the 2016/17 delivery year.


The Houston-based company said it is evaluating the potential impact that the transition auctions may have on existing retail contracts, if any. Under the phased-in pricing structure, retail customers may be dealing with much higher capacity prices for the 2016/17 delivery year.


The 2016/2017 transition auction cleared at $134/MWd. Dynegy cleared and converted 6,542 MW from the existing base product to the CP product – including 730 MW to be imported into PJM from the company’s Illinois Power Holdings (IPH) segment assets located in MISO. Based on this clearing price and the remaining base capacity product, PJM Capacity revenues for planning year 2016/17 total $434 millionrepresenting an increase of $176 million over the previously cleared volumes.


The 2018/2019 PJM capacity auction cleared the Capacity Performance (CP) product at $165 per megawatt-day (MWd) in the RTO (unconstrained region), $215/MWd for the ComEd region, and $225/MWd in the EMAAC region. The RTO base capacity product cleared at $150/MWd.


Dynegy cleared 9,891 megawatts (MW), including 835 MW that will be imported into PJM from the company’s IPH segment assets located in MISO. Capacity revenues associated with these clearing prices total $653 million for planning year 2018/19. (Dynegy also provided a table of cleared capacity for the 2018/2019 capacity auction by zones.)


Results for the 2017/18 transition auction will be announced by Dynegy later this week.

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