In recent years, PJM costs such as capacity and transmission services have risen significantly. Capacity is how much electricity generation is available to meet the PJM regional demand during all hours. Recent significant growth in demand has driven capacity market auction prices higher, adding millions of dollars to CVEC’s power costs. The most recent auction resulted in capacity costs increasing nearly 10 times at CVEC substations served by AEP transmission system and 15 times for substations served by Dominion’s transmission system. In addition, older power contracts are beginning to expire.
A cold spell in January and February revealed serious challenges in the regional electricity market that supplies our cooperative. A flawed market design allowed electricity suppliers to charge prices significantly above what it cost them to generate the electricity.
CVEC is actively securing new energy sources that offer the best value for our members. However, today's market prices are significantly higher.