30 May ALBIREO ALERT – Important Information for Mid-Atlantic and Midwest Customers
As always, thank you for being a valued Albireo customer.
On Wednesday, the largest grid operator, PJM, announced its forward capacity auction results and the final bids shocked the marketplace. The results for 2021/2022 were 90% higher than the previous year. This pricing will impact future costs for customers throughout PA, NJ, MD, DE, VA, WV, OH and the greater Chicago region. While $140 per Megawatt-day (MW-day) was the pricing for most of PJM, other areas such as PSEG were over $200 per MW-day.
One reason for the spike in pricing is that older nuclear plants are being decommissioned and replaced with new renewable sources. This impacts supplier and utility pricing, so now it is more important than ever to control demand spikes and increases in your load profile.
We will work with your business to control budgets on the supply side (energy purchasing) but we will also be rolling out demand side options so that we can decrease the charges on your supply pricing, as well as to the utility.
We will soon be announcing programs to increase your efficiency while protecting you from price increases. If you have any questions, please reach out to your Albireo rep. You can also email us at email@example.com.
Thank you for your patronage. We look forward to continuing to serve you.