Pennsylvania governor complains to regulator about PJM's power market rules [View all]
Source: Reuters
December 30, 2024 6:27 PM EST Updated 11 hours ago
NEW YORK, Dec 30 (Reuters) - Pennsylvania Governor Josh Shapiro filed a complaint with a federal energy regulator against PJM Interconnection on Monday, arguing that the largest U.S. power grid operator must change its market rules or risk soaring electricity costs.
PJM Interconnection, which runs the electrical grid covering more than 65 million Americans across parts of 13 states from Illinois to New Jersey, has faced increased public scrutiny since July, when it said its annual capacity auction would result in record-high payments to power plants in its system.
"It is difficult to escape the conclusion that PJM's capacity market is currently failing," Shapiro, a Democrat, and the Commonwealth of Pennsylvania said in the complaint filed with the Federal Energy Regulatory Commission.
The complaint argues, in part, that PJM's capacity market price cap is unreasonably high and threatens to add billions of dollars to power bills while failing to substantially increase grid reliability. If certain market rules remain in place, ratepayers across the PJM region could see as much as a $20.4 billion increase in costs, the complaint said.
Read more: https://www.reuters.com/business/energy/pennsylvania-governor-complains-regulator-about-pjms-power-market-rules-2024-12-30/
Link to COMPLAINT (PDF) - Governor Josh Shapiro and The Commonwealth of Pennsylvania Complainants, v. PJM Interconnection, L.L.C. Respondent.
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