Five Democratic governors from Delaware, Illinois, Pennsylvania, Maryland, and New Jersey have called on PJM Interconnection, the nation’s largest electric grid operator, to address record-high prices in its recent power capacity auction, FOX Business reports.
Governors John Carney, J.B. Pritzker, Josh Shapiro, Wes Moore, and Phil Murphy sent a joint letter last week urging PJM to make adjustments after the July auction for 2025-2026 awarded prices that were 833% higher than the previous year. The price increase is expected to impact 13 states and the District of Columbia, costing homes and businesses $14.7 billion.
The governors expressed concern about a potential rise in energy costs for consumers and urged PJM to increase auction participation from power plants, promote renewable energy, and lower the capacity price cap.
“Urgent action is needed to prevent customers from paying billions more than is necessary,” they wrote.
The sharp increase in auction prices, attributed to declining supply and rising demand, has sparked legal complaints from environmental groups like the Sierra Club, Earthjustice, and the Natural Resources Defense Council. These groups challenged PJM’s pricing process, calling for regulatory review. PJM has requested a six-month delay for its 2026-2027 auction to address these issues, a move the governors support.
In response, PJM acknowledged the impact of state-led policy transitions away from fossil fuel generation, which it says could lead to supply constraints if renewable infrastructure does not keep pace.
“Our state leaders are critical voices,” PJM spokesperson Jeff Shields stated.
Shields emphasized PJM’s efforts to balance cost-effective investment in clean energy with affordability for consumers.
