TRENTON, N.J. — The New Jersey League of Conservation Voters criticized the results of the latest PJM Interconnection capacity auction on Thursday, claiming the grid operator’s pricing structure is contributing to higher electricity rates and stalling progress on clean energy projects.
“The results of PJM’s latest capacity auction represents the highest price PJM could charge, and it’s New Jersey ratepayers who will pay the price,” said Ed Potosnak, Executive Director of New Jersey LCV.
Potosnak praised Governor Phil Murphy and Pennsylvania Governor Josh Shapiro for pushing for a cap in the auction but said PJM’s failure to connect clean energy projects to the grid continues to drive up costs.
New Jersey LCV renewed its call for the state legislature to pass a 100% clean energy by 2035 bill. Potosnak argued that the bill would lead to lower electric prices and generate union jobs, stating clean energy is a “cheaper, faster, and healthier approach.”
Murphy has promoted a long-term energy plan that includes a phase-out of new gas-powered car sales by 2035, a transition to renewable sources, and a promise of job creation. However, critics have pointed to higher energy prices and limited job growth as evidence the current policy has not yet met its economic targets.
PJM operates the power grid across 13 states including New Jersey and holds regular capacity auctions to determine future energy pricing. The latest auction hit the maximum price allowed under the cap set by regional governors.
An environmental group says a stalled grid and a capped auction are driving prices up — not clean energy policy.