Dynegy Inc. today reported its results from the PJM capacity auction for planning year 2018/19 and the transition auction for the 2016/17 delivery year.

Most notably, Dynegy noted that the company sells PJM capacity through its retail business, "and is evaluating the potential impact the transition auctions may have on existing Retail contracts, if any."

As previously noted by EnergyChoiceMatters.com, retail suppliers in PJM are, in some zones, facing a near doubling of unhedgeable capacity costs under the transition auctions, for years in which they have already entered into fixed price contracts.

The 2016/2017 transition auction cleared at $134 per megawatt-day. Dynegy cleared and converted 6,542 MW from the existing base product to the CP product. This includes 730 MW to be imported into PJM from the Company’s IPH segment assets located in MISO. Based on this clearing price and the remaining base capacity product, PJM Capacity revenues for planning year 2016/17 total $434 million representing an increase of $176 million over the previously cleared volumes. Results for the 2017/18 transition auction will be announced later this week.

The 2018/2019 PJM capacity auction cleared the Capacity Performance product (CP) at $165 per megawatt-day in the RTO (unconstrained region), $215 per megawatt-day for the ComEd region, and $225 per megawatt-day in the EMAAC region. The RTO base capacity product cleared at $150 per megawatt-day.

Dynegy cleared 9,891 megawatts (MW), which includes 835 MW that will be imported into PJM from the Company’s IPH segment assets located in MISO. Capacity revenues associated with these clearing prices totals $653 million for planning year 2018/19. The below table lists Dynegy’s cleared capacity for the 2018/2019 capacity auction by zones:

Zone     Megawatts
RTO CP       4,607
COMED CP     3,017
EMAAC CP       533
RTO Base     1,734
TOTAL        9,891