S&P puts Elwood on watch

S&P said it placed the BB rating on Elwood Energy LLC’s senior notes on CreditWatch with negative implications.

“The CreditWatch placement reflects our expectation that the future clearing prices in the PJM ComEd zone will be substantially lower than we previously anticipated. We now expect capacity prices in the ComEd zone for the 2023/2024 delivery years to clear at $45 per megawatt day (/MW-day), which compares with $68.96/MW-day for the 2022/2023 delivery years. Given that Elwood derives 60%-70% of its operating revenue from capacity payments, we expect a material decline in the project's cash generating ability,” the agency said in a press release.

S&P said it expects to resolve the CreditWatch in the next few weeks.

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