In 2024, prices jumped a whopping 800% at PJM Interconnection, a “traffic controller” part of the grid that provides service in 13 states as well as D.C. For context, PJM operates the largest power grid in the U.S., with around 67 million customers—that’s more than 20% of the American population.
Here’s some quick context: Each year, PJM holds a capacity auction which sees power providers bid to meet the future demand in PJM territory, and it’s during this event that PJM “secures commitments” from power providers who will generate the future supply. As Reuters reported in July of 2024, amid a dwindling supply and an increase in demand, “Prices for power plants landed at $269.92 per megawatt-day, compared to $28.92 per megawatt-day” in 2023.
Now, according to a new piece by Laila Kearney at Reuters, prices are set to spike again, and the projection for this year is around 20%. If you live in Delaware, Illinois, Indiana, Kentucky, Maryland, Michigan, New Jersey, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, West Virginia, or D.C., this could affect you.
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