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Thursday, May 30, 2019

PJM: Gas Outcompetes Coal, But Less So at High Loads

PJM is the largest ISO region in terms of gas fired power demand.  Gas output has continued to rise vs. coal, and in May the YOY comparisons show a gas-vs-coal elasticity curve that is shifted up, but with a lower slope than May 2018.  This suggests that the higher system loads of summer may compress the significant gains in market share for gas.  No real heat has tested the edge case of the equation yet.