If you thought developments such as the Regional Greenhouse Gas Initiative and other pressures on coal-fired electricity generation would be easily offset, brace yourself. The largest electrical grid operator in the U.S., PJM Interconnection, held its annual power market auction last week and prices soared to unprecedented levels, up by more than 800 percent.
PJM’s footprint includes Pennsylvania. The price went from $28.92 per megawatt per day to $269.92 for the period from June 1st , 2025 through May 31st of ’26.
The company blamed three main factors for the sky-high costs: a decreased supply of power due mainly to retirements of generating stations such as the Homer City Power Plant, an increase in projected peak load, and market reforms approved by the Federal Energy Regulatory Commission.
The auction usually happens three years before implementation of the new prices but it was delayed this time from May of 2022 to last week because the feds had suspended auctions while they refashioned the capacity market rules.
Senator Joe Pittman last week urged Governor Josh Shapiro to stop his appeal of Commonwealth Court’s ruling that RGGI is unconstitutional.
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