Full Title: Private Equity’s Losing Bet on PJM Coal Plants
Author(s): Dennis Wamsted, Seth Feaster, David Schlissel
Publisher(s): Institute for Energy Economics and Financial Analysis (IEEFA)
Publication Date: June 2, 2022
Full Text: Download Resource
Description (excerpt):
This is shaping up to be an extraordinarily difficult year for the private equity firms operating in the PJM power market—especially those that own some of the region’s aging coal–fired power plants.
One key financial support, the price PJM pays for capacity (essentially a payment that power plants receive for promising to be available when needed), will drop from $140 per megawatt–day to just $50 this month for the 2022–23 delivery year. This will reduce revenues for generators across the board, but it is particularly troublesome for the region’s coal plants, which are struggling to remain competitive in the day–to–day energy market as well.