By Naureen S. Malik and Mark Chediak, Bloomberg
The cost to keep the lights on for 65 million Americans who tap into the largest US electrical grid will rise 833% starting in June.
Generators that provide electricity to the 13-state grid that stretches from New Jersey to Illinois will get a record $269.92 per megawatt-day from utilities to provide capacity over a 12-month period starting next June, according to results of an auction disclosed Tuesday. That’s up from $28.92 in last year’s auction.
Power producer Vistra Corp rose more than 9% as of 4:20 p.m. in after-market trading, while Constellation Energy Corp. climbed as much as 5.7%.
The auction by grid operator PJM Interconnection LLC provides a critical revenue source for power plants in the region, shaping the electricity mix for a vast swath of the US. Those payments aim to ensure that generators are ready to serve the grid whenever PJM needs them. Electricity users — households and businesses alike — end up bearing the costs of such protections.