Consumer Advocacy Group Files Complaint Against PJM Interconnection

NEW YORK (Reuters) – A consumer advocacy group has launched a complaint against PJM Interconnection, claiming that the largest U.S. grid operator is unfairly awarding record high payments to power plants, which is pushing up electricity costs for homes and businesses.

The filing with the Federal Energy Regulatory Commission on Monday is the second recent complaint regarding PJM Interconnection's 2025-2026 capacity market auction, which set prices for power generators more than 800% higher than the previous year.

Following these results, PJM leaders attributed the unprecedented prices to soaring power demand and decreasing supply due to the retirement of fossil-fired power generators.

> "These clearing price outcomes do not match the market facts on the ground," the joint consumer advocacy group stated in its complaint. "PJM's existing capacity market rules are unjust and unreasonable."

The consumer advocacy group, which includes the Illinois Attorney General's Office, Maryland Office of People's Counsel, New Jersey Division of Rate Counsel, and Office of the Ohio Consumers' Counsel, argued for changes to the rules governing PJM's capacity auction.

PJM Interconnection compensates power plants for operating during peak demand, with payment prices determined in annual auctions. The latest auction raised capacity costs to consumers from $2.2 billion to $14.7 billion. Under current PJM capacity market rules, projections suggest the 2026/2027 auction could impose charges on ratepayers up to $37 billion.

PJM has postponed that auction by approximately six months to address a separate complaint from environmental groups, including the Sierra Club.