Market fundamentals favored lower prices, but fuel costs pushed up PJM's 2008 LMP

摘要

All things being equal, PJM Interconnection's 2008 loca-tional marginal price would have dropped 16% from the year before, according to its market monitor, but instead higher fuel costs drove the load-weighted average up 15.4% to $71.13/MWh.rn"Overall, supply/demand pressures were for a lower price," Joseph Bowring told reporters at a Wednesday briefing on PJM's 2008 state of the market report. But "that didn't occur primarily because of higher fuel costs," particularly in the first half of the year.rnIn other findings of note, the average cost of new capacity that cleared in the 2008 base auction under PJM's reliability pricing model was down sharply from the 2007 base auction, and a new means of analyzing supply sources revealed that the share of load served by the spot market is much higher than previously stated.