One particular datapoint to watch is auction prices for production capacity as these are the most immediate market. Those have jumped, with PJM's +800% in 2024 and +22% (22% from 2024->2025, $28.92 -> $329.17 or +1038% total over 2023 -> 2025)
https://www.reuters.com/business/energy/biggest-us-power-gri...
We (Well, the article does it for us as well) can identify that this market jump is driven primarily by increased demand rather than lower capacity, as the amount of capacity sold has increased. (Covering ~50% of the new demand)
These prices do not immediately translate into residential fees, there's a lot of financial engineering in between the auction and customer contracts (F in chat for the counterparty of the hedge), but at the end of the day you can't sell $500 of power for $5 so the increased cost will worm their way through to residential consumers eventually. One particularly annoying thing is that this isn't a consistent amount of time by region; Some people are seeing 3x electricity bills already, for others their power company may have more strongly hedged against price increases.
I confess I don't know how to contextualize this. The article says that PJM claims this should be a 1.5% to 5% increase in bills for folks. And it notes this is the first time capacity has been added in the last four auctions.
Is your contention that we a) not believe this will only have an "at most 5% increase" or b) predict that it will be more dramatic in the future?
I'm also curious where you are getting the 3x electric bills claim. The largest bill jumps I'm aware of were in CA and were largely related to fires. That and general grid upgrades.
We (Well, the article does it for us as well) can identify that this market jump is driven primarily by increased demand rather than lower capacity, as the amount of capacity sold has increased. (Covering ~50% of the new demand)
These prices do not immediately translate into residential fees, there's a lot of financial engineering in between the auction and customer contracts (F in chat for the counterparty of the hedge), but at the end of the day you can't sell $500 of power for $5 so the increased cost will worm their way through to residential consumers eventually. One particularly annoying thing is that this isn't a consistent amount of time by region; Some people are seeing 3x electricity bills already, for others their power company may have more strongly hedged against price increases.