April 1, 2014

Natural Gas Price Spikes, Availability Drove Electric Rate Spikes Senate Committee Told

Frederick Bresler, Vice President of Market Operations for PJM, said Tuesday severe winter weather caused record natural gas price spikes and delivery problems that were responsible for about half the electric generation outages on the coldest day of the winter on January 7 forcing the cost of electric from an average of less than $40 per MwH to more than $1,000 per MwH for suppliers, higher than the cap PJM allows generators to charge.
Bresler’s remarks were made before the Senate Consumer Protection and Professional Licensure Committee during a hearing to look into the causes and potential solutions to the electricity price spikes consumers suffered during the coldest parts of this past winter. Click Here for more.