FERC OKs PJM Deal with Devil (Shapiro) for Higher Rates, Blackouts

In January, MDN reported that the PJM Interconnection electrical grid operator, covering Pennsylvania (along with all or parts of 12 other states and the District of Columbia), had caved to the political demands of PA Gov. Josh Shapiro to artificially cap the prices of the next capacity auction scheduled for July 2025 (see PJM Grid Caves to PA Gov. Shapiro Bullying, Blackout Risk Rises). It means electric ratepayers won’t see as high an increase in their electric rates (for now), but it also means the risk of a blackout has just gone up significantly and it means prices won't go lower than they otherwise could have. The bad news is that the Federal Energy Regulatory Commission (FERC) has given its stamp of approval on the deal.

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