10. June 2009

Pennsylvania Power Auctions with Positive Signals

The news flow on the Pennsylvania power auctions was positive: (1) Exelon’s power auction yielded a 15% higher price than expected. (2) The utility commission approved PPL’s long-term procurement plan for 2010-13. This implies that the utility will procure its power via a series of procurement auctions. This should pave the way for the implementation of market-based power rates in