NEGATIVE PRICES AND "MARKET DISTORTION"

THE RHETORIC: The PTC undermines and distorts price signals in wholesale electricity markets.
 
THE REALITY: Wind energy reduces electricity costs for consumers by displacing more expensive forms of energy. This impact is entirely market-driven1, is widely seen as beneficial, and occurs for all low-fuel-cost sources of energy, including nuclear.

  • The wind Production Tax Credit (PTC) is almost never factored into the electricity market prices that other power plants receive.
  • Regardless of whether a wind plant receives the PTC, the wind plant does not have the highest operating cost and therefore does not set the market price.
     
  • Negative electricity prices are extremely rare and are highly localized in remote areas where they have little or no impact on other power plants.
     
  • Across the U.S., much-needed transmission upgrades are eliminating the remaining instances of negative prices.
     
  • Transmission bottlenecks, periods of low demand, and low-priced shale gas combined impact Exelon's nuclear plant revenue 1,450 times more than negative prices2.

Stay informed

Take Action

Subscribe to the American Clean Power and receive the latest renewable energy news, policy updates, and opportunities to get involved.