July 29, 2015 03:28 PM Eastern Daylight Time
NEW YORK–(BUSINESS WIRE)–The delay of the transition capacity auctions and changes to their parameters highlight the fluid and challenging operating environment for merchant generators in the PJM Interconnection LLC (PJM) zone, according to Fitch Ratings.
However, we view PJM’s decision to delay its upcoming transition auctions to allow demand response (DR) and energy efficiency (EE) providers to participate as credit neutral. Fitch expects the inclusion of DR and EE providers to have a modest impact on the outcome of the transition auctions given their relatively small sizes in recent auctions and the need to bid year-round availability with high reliability.
