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United States grid operator deals with new problem over power supply auction

A consumer advocacy group has launched a problem versus PJM Affiliation, saying the biggest U.S. grid operator is unfairly awarding record high payments to power plants and rising electricity expenses for homes and services.

The filing with the Federal Energy Regulatory Commission on Monday is the second recent grievance over PJM Affiliation's. 2025-2026 capacity market auction, which set rates for power. generators that were more than 800% greater than the previous. year.

Following the outcomes, PJM leaders said the all-time high. prices were mainly triggered by ballooning power demand and. diminishing supply as fossil-fired power generators retire.

These clearing price results do not match the market truths. on the ground, the joint customer advocacy group said in its. complaint. PJM's existing capability market rules are unjustified. and unreasonable.

The customer advocacy group, that includes the Illinois. Attorney General's Office, Maryland Office of Individuals's Counsel,. New Jersey Division of Rate Counsel and Workplace of the Ohio. Consumers' Counsel, stated the rules governing PJM's capability. auction ought to be altered.

PJM Affiliation pays power plants to operate at times of. high demand, with rates for the payments set at yearly. auctions.

The current auction increased capability costs to customers to. $ 14.7 billion from $2.2 billion, the complaint said. Under. present PJM capacity market rules, some price quotes forecast the. 2026/2027 auction could result in charges to ratepayers surging. to $37 billion, the grievance states.

PJM delayed that auction by about six months to resolve a. different grievance against it submitted by environmental groups,. including the Sierra Club.

(source: Reuters)