Midwest and Mid-Atlantic (PJM)

Inexpensive spot prices for natural gas in the Midwest and Mid-Atlantic Regions have had a material impact on the spot prices for electricity inPJM. Figure 1 illustrates the monthly average Real-Time index prices for the two main trading hubs in PJM (PJM West is a broad area from Erie to DC, PJM East is the Philadelphia area and East) going back to 2016. This shows a decreasing trend in spot prices going back to last fall, following the decline in natural gas prices. It also highlights that in the last two months, spot electricity prices have settled near their lows, close to those that were set back in 2016.