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News Analysis

New England puts a price on electric reliability, but some say the charge looks more like a tax.
Fortnightly Magazine - August 2001

report," says Whitehouse, "PJM estimates that a new peaker with a marginal variable cost of $30 per MWh would have earned about $77,000 per MW in the PJM energy market during 1999 in fixed margins. This is equivalent, to $77/kW-year, or $6.42/kW-month. The important point is that this is enough to pay all of the annual fixed costs for a new peaker in a year."

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