Payouts for U.S. Power Generators Plunge in Biggest Market
- Results may affect valuations for takeover candidates
- First auction to include plant backed by state subsidy
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Payments to power generators for supplying the largest U.S. electricity grid plunged to a four-year low.
Suppliers will receive $76.53 a megawatt-day for the year starting June 2020, based on the results of a so-called capacity auction held earlier this month, grid operator PJM Interconnection LLC said on its website Tuesday. That’s down from $100 in last year’s sale. Analyst estimates compiled by Bloomberg ranged from $85 to $130.