Climate Change
Mid-Atlantic States, PJM Agree to Price Cap for Capacity Auction, Temporarily Easing Energy Affordability Concerns
The agreement between the region’s grid operator, PJM Interconnection, and Pennsylvania should shield ratepayers from price shocks.
A settlement between PJM Interconnection, the regional grid operator, and the state of Pennsylvania will temporarily cap soaring electricity costs for 65 million consumers across the Mid-Atlantic and Midwest, offering relief from record-high capacity auction prices that threaten to drive up bills and strain state economies. The two-year price cap on capacity auctions will likely shield ratepayers while allowing states to address critical energy challenges.