Yet how do you explain the exponential (800%) increase in costs?
“PJM Interconnection, the company that operates the electric grid for 13 states, including Ohio, recently held its 2015 capacity auction. This gave the first real indication of just how drastic the effects of Obama’s war on coal will be. The market-clearing price for new 2015 capacity was $136 per megawatt.
That’s eight times higher than the price for 2012, which was just $16 per megawatt. In Pennsylvania, the new market price is $167 per megawatt — 10 times higher. In northern Ohio, which is suffering from more forced coal-plant retirements than the rest of the region, the 2015 price is an astounding $357 per megawatt.”
Well, Obama said his policies would necessarily ‘skyrocket’ energy prices. Hope you don’t live in Pennsylvania.
357 dollars a megawatt which means a 35 cents a kilowatt/hr?
(not to mention the various taxes and fees that will push that close to 50 cents a kilowatt hour) Those prices will devestate those states.
I don’t dispute any of this, but I’m not totally familiar with how these energy futures exchanges work. With an 800% increase over several years, it sounds like the buyers are building a lot more than just coal plant closings into their bids.