Stock

US governors push back on PJM after record-high power plant prices

NEW YORK (Reuters) – A group of five governors on Tuesday urged PJM Interconnection, the largest U.S. grid operator, to change the process it uses to determine the price paid to power plants after record-high prices awarded in its last auction.

The most recent PJM capacity auction resulted in prices that were nearly 10 times the previous year, with results attributed largely to shrinking power supply and rising electricity demand.

The prices raised concerns about swelling power bills for everyday homes and businesses in the grid operator’s territory, and led environmental groups to file a complaint against PJM’s process to determine its prices.

The capacity auction results will cost homes and businesses in the 13 states and the District of Columbia that are served by PJM $14.7 billion, the governors of Pennsylvania, Illinois, Maryland, New Jersey and Delaware said in a letter to the grid operator.

“Urgent action is needed to prevent customers from paying billions more than is necessary,” the group said.

Those governors implored PJM to broaden the number of power plants in its auction to increase available supply calculations used to determine prices, encourage more renewable power generation and lower the capacity price cap, among other requests.

PJM has asked regulators to delay its 2026/27 auction by about six months to address the complaint against it. The group of governors said they supported the delay.

The grid operator said it had continuously warned that government policy measures aimed at shifting away from fossil-fired power generation, before adding new clean electricity generation, could result in a supply crunch.

“Our state leaders are critical voices and we appreciate their input as we work to balance the need for an investment signal for new generation with the need to keep prices affordable for consumers,” PJM spokesman Jeff Shields said in an email. “Our states also play a critical role in the policy choices they make that directly impact supply and demand on our system,” he added.

This post appeared first on investing.com

You May Also Like

Editor's Pick

Sen. JD Vance (R-Ohio) and Minnesota Gov. Tim Walz (D) will face off Tuesday night at a CBS News vice-presidential debate in New York....

Latest News

A North Korean defector who escaped to the South more than a decade ago was detained after attempting to cross back into North Korea...

Economy

A U.N. human rights group confirmed Hamas’ leader in Lebanon, who was recently killed by Israeli strikes, was their employee.  Fateh Sherif was killed...

Investing

Astron (ASX:ATR) and Energy Fuels (TSX:EFR,NYSEAMERICAN:UUUU) have completed the establishment of a joint venture to advance the Australia-based Donald rare earths and mineral sands...

Disclaimer: balanceandcharge.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2024 balanceandcharge.com

Exit mobile version