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PSC Supports Ratepayer Advocate In PJM Capacity Auction Complaint
From Press Release:
The Maryland Public Service Commission today filed comments with the Federal Energy Regulatory Commission (FERC) in support of a complaint filed by the Maryland Office of People’s Counsel (OPC) and other PJM states’ consumer advocates against the regional grid operator PJM Interconnection, LLC. The complaint contends that PJM’s most recent capacity auction will impose unjust and unreasonable charges on ratepayers. The capacity auction pays generators to be available three years in the future and is designed to meet regional electricity demands and maintain grid reliability.
In PJM’s auction last summer for the 2025/2026 delivery year, the price tag for PJM-wide capacity costs rose from $2.2 billion to $14.7 billion, which will in turn cost individual customers hundreds of additional dollars each year.
A key component of the complaint is that PJM failed to include Maryland’s Brandon Shores and Wagner power generating plants as a capacity resource in its auction for the delivery year. The plants however will continue to operate and provide reliability for Maryland’s electric customers as a result of a settlement agreement between the plant owner and a broad group of stakeholders, including the Commission.
In its support for the Maryland OPC’s position, the Commission urges FERC to ‘override the outcomes of PJM’s markets when it finds that ratepayers – and particularly Maryland ratepayers – will be overcharged.’ The Commission looks forward to a timely investigation by FERC on this matter in the interest of applying just and reasonable rates.”
Press Release (05/20/2025)
