Advanced Energy Perspectives

The PJM electricity market faces a capacity shortfall, due to rising demand and a slow and inefficient interconnection process. As millions of people across the region face rate hikes due to this capacity shortfall, the states that are part of the PJM market are seeking new ways to take action to help keep power affordable and reliable. 

In the face of these challenges, some stakeholders are seeking to attract more natural gas power plants to PJM states. However, natural gas power plants are not the solution to this crunch. (One reason for this is the gas turbine supply chain, which is currently stretched to a breaking point: Gas turbines are being ordered up to eight years in advance due to record demand.) State lawmakers and regulators need to expand capacity quickly, and they need to tap non-gas solutions to do so. 

California is making enormous strides in its race to 100% clean energy, but rapidly rising energy prices are threatening to hold us back.

Electricity prices have surged 127% over the past decade, with some customers seeing increases of over 60% just in the last four years. These rising costs put a significant strain on household budgets, especially in disadvantaged communities, and pose a growing threat to the success of California’s clean energy and electrification goals.

Addendum July 16, 2025: On July 2, 2025 the Public Service Commission of Wisconsin (PSCW) released its written order for the decision on the Oak Creek gas plant. Despite intervenor testimony demonstrating that energy efficiency programs, virtual power plants (VPPs), and distributed generation could provide a cost-effective alternative to part of the requested load, the PSCW approved the project in full. Despite WEC Energy Group artificially capping the amount of wind allowed in its modeling and not considering any kind of VPPs, the Commission considers this project compliant with the Energy Priorities Law. The order directs the opening of an investigation examining cost overruns and how to develop a consistent approach across the state. Additionally, the PSCW directs WEC to include an analysis of a robust and comprehensive demand response program in their next rate case, which will be in 2026.

After a robust exchange of testimony, arguments, and briefings among stakeholders, the fate of We Energies’ (WEC) proposal to spend $1.2 billion on a new gas plant – a plant the utility plans to use just 10-20% of the time – now rests with the Public Service Commission (PSC) of Wisconsin. Formal proceedings before the PSC concluded on April 11, and a decision is expected in the coming weeks.