Comment Interesting link on the mechanics of power market (Score 1) 53
I found this to be an interesting article on how electricity rates are established by the various regional grid operators.
https://ancillary-proxy.atarimworker.io?url=https%3A%2F%2Ffinance.yahoo.com%2Fnews...
tldr; there are auctions where the grid operators (lines and transmission) tell the power plant operators (nat gas, nuclear, renewable, etc) how much power they will need in the incoming years. Generating capacity (new plant, new turbines, etc) takes time to build out.
"Historically, the auctions were held three years in advance of when the power would be required, which was thought to be enough time to bring new generation online if needed. But regulatory disagreements during the first Trump administration delayed several auctions, forcing PJM to hold them on a truncated timeline that meant new plants couldn’t be built fast enough.
“There’s a risk that demand could outpace supply,” said Stu Bresler, executive vice president of market services and strategy at PJM "