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Utilities rise after PJM says 2017-18 grid capacity cost rises to $120/MW-day

  • Regional transmission organization PJM says its recent auction to procure power supplies for 2017-18 resulted in a clearing price for resources - which includes generation, annual demand response and energy efficiency - which rose to $120/MW-day for most of its deliverability area.
  • PJM, which coordinates the movement of wholesale electricity in all or parts of 13 states and D.C., says the auction continued an overall trend toward more gas-fired generation and increasing diversity of resources.
  • PPL, Exelon (EXC), American Electric Power (AEP), Duke Energy (DUK), Dominion Resources (D) and FirstEnergy (FE) are all up ~1% AH.
  • Earlier, Barclays downgraded the entire electric sector of the U.S. high-grade corporate bond market to underweight, saying it sees long-term challenges to electric utilities from solar energy which aren't yet priced in.
  • ETFs: XLU, LQD, IDU, VPU, CORP, CFT, UPW, FUTY, RYU, FXU, QLTA, SDP, IGHG, COBO, IGS, CBND, IGU, QLTB
Comments (3)
  • marketnews09
    , contributor
    Comments (95) | Send Message
     
    When you build wind turbines in tornado alley, you have a major problem
    Solar energy is one half of one per-cent, if that. If not subsidized, it would not be cost effective. Repair and replacement is another cost factor, who pays for that?
    The gov't has also subsidized solar, as known in Solindra, which failed at 500 million of taxpayer dollars. I'm not saying that solar does not have its place, but we are a country that depends upon electricity, not non recurring wind. I've read where wind turbines are killing eagles and thousands of other birds and nothing is being said about that. I wonder why. Anyone have anything to offer.
    23 May, 07:29 PM Reply Like
  • larch99
    , contributor
    Comments (31) | Send Message
     
    Duke Energy paid out 1 Mil in fines for killing 14 Golden Eagles, and others have been fined, Exxon, etc.
    23 May, 09:34 PM Reply Like
  • al roman
    , contributor
    Comments (4602) | Send Message
     
    Barclays concerns are on Solar-storage Which is competitive, which seems to be moving from the pacific west eastward.
    Barclays wants estimates on effects on revenue which would affect your Bonds immediately even though the conversions are 2017 onward.
    They want projection and numbers to counter their analytics,if satisfied their would be more long term clarity on pro's & con's.A stress test on our old work horses.
    The PJM auction price for 2017 generation and the potential cost effectiveness of solar - storage would be a consideration for those in the NE who could afford the switch over.
    23 May, 09:05 PM Reply Like
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