NJBPU Says PJM Capacity Market Can No Longer Deliver Reliable Power At Lowest Possible Cost
XLU•NJBPU study calls for PJM market reforms
Aug. 13 (Reuters) - New Jersey Board of Public Utilities (NJBPU):
- Releases an in-depth study that finds capacity market run by regional grid operator PJM Interconnection (PJM) can no longer deliver reliable power at lowest possible cost
- Says this calls for reforms to improve it
- Says report titled "An Investigation of PJM's Capacity Market," comes as New Jersey electricity bills jumped roughly 20 percent last year, driven in large part by rising costs in PJM's capacity market
- Says report advances New Jersey Governor Mikie Sherrill's affordability agenda by confronting root cause of recent bill increases
- Says capacity charges make up 15-20% of typical customer's electric bill, the single largest cost component NJBPU cannot directly set, regulate, or change
- Says recommended reforms call for data centers to pay fair share across 13-state PJM region, while modernizing PJM's markets to better reflect real-world conditions and protect ratepayers from price volatility
