Pennsylvania Governor Josh Shapiro has filed a complaint with the Federal Energy Regulatory Commission FERC against PJM Interconnection, the operator of the U.S. power grid covering parts of 13 states.
The complaint argues that PJM’s market rules are leading to excessively high electricity costs and could add up to $20.4 billion to power bills, without significantly improving grid reliability.
PJM’s capacity market, which sets prices for power plants that ensure supply reliability, has come under scrutiny after an annual auction in which prices were 900% higher than the previous year.
This surge in costs is attributed to tightening power supplies and rising electricity demand, with a particular focus on factors such as policy-driven energy transitions and increasing demand from data centers and electrification.
The complaint suggests that PJM’s price cap is unreasonably high, and the market’s design needs reform to prevent undue financial burdens on consumers.
PJM, in response, points to supply and demand imbalances as the primary causes for the high prices, noting that policy decisions and growing demand have strained the system.