Publish Date: February 24, 2025
A new analysis finds that PJM’s slow and complex interconnection process prevented new energy supply from coming online, contributing to higher prices and potential retail rate hikes of up to 24% across the region. The report estimates that proactive transmission planning and interconnection reforms could have reduced consumer costs by as much as $7 billion, highlighting the urgent need for policy changes to accelerate new generation.
PJM’s latest capacity auction saw prices surge to $14.7 billion, an increase of $12.5 billion from the previous auction, due to a combination of rising demand, generator retirements, and delays in bringing new resources online. While PJM is in the midst of an interconnection reform process, the slow pace of change continues to limit the supply of new energy, putting consumers at risk of even higher prices in future auctions. This report, prepared for Advanced Energy United by Grid Strategies, examines how outdated interconnection policies are driving up costs and outlines solutions to create a faster, more efficient process that ensures a reliable and affordable energy future.
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