PJM capacity auction was not competitive and market remains under threat: IMM

摘要

The results of PJM Interconnection's most recent base capacityauction were not competitive due to bidding behavior and the gridoperator's markets are under stress from various forces, itsindependent market monitor said Thursday.“Our analysis concludes that the results of the PJM Energy Marketwere competitive in the first six months of 2018, and that the results ofthe most recent base capacity auction were not competitive,” JosephBowring, president of Monitoring Analytics, said in a statementregarding the second quarter 2018 State of the Market Report for PJM.The market monitor found the 2021/2022 Base Residual Auctionresults were not competitive as a result of offers above the competitive level by “some market participants,” according to thereport. Specifically, a combination of the rules on offer capping and“people’s willingness to exercise market power” led to theuncompetitive result, Bowring said in a phone call.