Summary: CPV Shore Holdings LLC

The Woodbridge Energy Center (Woodbridge or the project) is a 725 megawatt (MW) combined-cycle gas-fired power plant in Middlesex County, N.J., in the Eastern Mid-Atlantic Area Council (EMAAC) zone of PJM Interconnection LLC (PJM). The project is owned by CPV Shore Holdings LLC (CPV Shore), which itself is owned by CPV Shore Investment LLC (37.53%), Toyota Tsusho Shore LLC (31.25%), Osaka Gas Shore LLC (20%), and John Hancock Life Insurance Co. (USA) (11.22%). PJM announced the base residual auction results for delivery year 2022/2023 on June 2, 2021. Prices across the board fell significantly, with EMAAC clearing at $97.86/MW day (MWd), or 41% lower than the last auction clearing price of $165.73/MWd. PJM said several factors contributed to the decline,

...PJM announced the base residual auction results for delivery year 2022/2023 on June 2, 2021. Prices across the board fell significantly, with EMAAC clearing at $97.86/MW day (MWd), or 41% lower than the last auction clearing price of $165.73/MWd. PJM said several factors contributed to the decline, including a lower load forecast and reserve requirement, 19% decline in the net value of cost on new entry, higher nameplate capability of solar and wind resources that cleared the auction, participation of new generation assets (including up-rates), and lower offer prices from the supply resources that participated in the auction. The next capacity auction, which will procure supply for delivery year 2023/2024, is in December. We forecast EMAAC clearing prices of $140/MWd for delivery years 2023/2024 and 2024/2025. Beyond that, we forecast an EMAAC clearing price of $145/MWd, escalated at 2% thereafter (see "Unregulated Power: S&P Global Ratings Updates Its Capacity Price Assumptions," published...

Summary