PA Gov. Shapiro’s PJM ‘Price Cap’ Will Hike Electricity Bills

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). The bad news is that the Federal Energy Regulatory Commission (FERC) recently gave its stamp of approval on the deal (see FERC OKs PJM Deal with Devil (Shapiro) for Higher Rates, Blackouts). This post outlines the reasons why this deal will (a) lead to blackouts and (b) eventually result in higher, not lower, prices for ratepayers.

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