PJM energy market prices dropped 47.4% in the first quarter compared with a year earlier because of lower fuel prices and demand, the Independent Market Monitor reported in its quarterly State of the Market report.

LMPs averaged $26.80/MWh for the quarter versus $50.91/MWh in the first three months of 2015.

Net energy revenues — a measure of market performance and investment incentives — decreased by 62% for a new combustion turbine, 51% for a new combined cycle plant, 38% for new wind and 62% for a new solar installation.

Mild weather and low fuel prices contributed to a 79% drop in uplift costs, to $39.1 million from $186.4 million in 2015. Congestion costs decreased by almost 54% to $292.2 million.

– Rich Heidorn Jr.