“Electricity prices are skyrocketing because the grid operator PJM is failing to plan for the kind of energy infrastructure we need to affordably keep the lights on,” said Jon Gordon, Director at Advanced Energy United. “PJM didn’t prepare for an energy transition we all saw coming, and now consumers are going to pay the price.”

PJM scored a “D-” in a recent scorecard of how all grid operators are managing “generator interconnection,” the process of connecting energy projects to the power grid. PJM’s interconnection process was going so poorly it closed its interconnection queue until sometime in 2025, as hundreds of projects are still stuck waiting in line. And a 2023 report from Americans for a Clean Energy Grid graded PJM a “D” for its process of building new transmission lines, which are needed to connect energy projects to population centers.

"PJM fell behind on interconnection and long-term transmission planning years ago, and now the problems are just cascading and piling up,” added Gordon, who leads United’s engagement with PJM. “With transmission planning improvements on the docket and further interconnection reforms urgently needed, these auction results should send a clear message that change can’t come too soon.” 

The price increase within PJM’s service territory, which includes 13 states from New Jersey to Illinois to Virginia, to is set to take effect in June of 2025. Capacity prices are one component of wholesale costs that ultimately get factored into the price paid by end-use customers; electric bills also reflect the cost of other wholesale services like energy and transmission, as well as distribution services, state programs, and other fees.